In response to the Fast-Track SWIFT Challenge posed by Mielle Organics, LLC, BBB National Programs’ National Advertising Division (NAD) announced that Kreyol Essence, LLC is voluntarily discontinuing challenged influencer advertising.
N.A.D. decided Kreyol Essence’s failure to disclose its financial relationships with social media influencers has raised concerns about advertising transparency.
About the challenge and NAD’s determination
The challenge was filed by Mielle Organics, a subsidiary of the Procter & Gamble Company and a direct competitor of Kreyol Essence in the beauty and personal care market, and was submitted by hair influencer Laura Benoit. The focus was on posting. Benoit promoted Kreyol Essence products on platforms such as TikTok, Facebook, and YouTube.
According to NAD, these posts do not clearly or conspicuously disclose the influencer’s material relationship with Kreyol Essence, violating advertising transparency standards.
“Although Kreyol Essence had already made efforts to remove the dispute prior to the dispute, NAD discovered that the disputed ads continued to appear in the marketplace even after the dispute was filed.” said NAD in its decision summary.
The fast-track SWIFT process under which this case was reviewed is designed to quickly resolve single-issue advertising disputes and minimize disruption to the marketplace. During the investigation, Kreyol Essence informed NAD that it had voluntarily discontinued all counter-ads to effectively address the concerns raised in the complaint.
“From a compliance perspective, NAD will consider discontinued claims as if they had been recommended for discontinuation by NAD,” the organization said. This means that while Kreyol Essence addressed this issue on a voluntary basis, the NAD decision will continue to serve as the official benchmark for compliance.
In an advertiser statement, Kreyol Essence expressed its intention to follow NAD’s guidance and “adhere to NAD’s recommendations,” the company said.
Impact on the beauty and personal care industry
NAD’s decision highlights the importance of adhering to established advertising standards, especially in influencer marketing, which is a growth channel for beauty and personal care brands. Influencer endorsements can be very effective in reaching your target audience, but they also come with significant regulatory and reputational risks if transparency requirements are not met.
This case highlights the need for manufacturers and suppliers in the cosmetics and personal care sector to be vigilant when monitoring their partnerships with influencers. According to Federal Trade Commission (FTC) guidelines, significant relationships between brands and influencers must be clearly and conspicuously disclosed to avoid misleading consumers.
Failure to do so risks regulatory scrutiny, which can lead to industry issues such as those raised by Mielle Organics.
This case illustrates the highly competitive nature of the industry. As noted by BBB National Programs, the fast-track SWIFT process is “an expedited procedure designed to efficiently resolve single-issue advertising litigation,” which helps ensure that advertising claims are consistent with consumer perceptions and It can be very important in high-stakes markets that can change the market. Share.
NAD’s findings and Kreyol Essence’s response should remind industry participants of the importance of proactive compliance. Even if brands address potential concerns, the persistent presence of non-compliant advertising in the marketplace can still pose challenges.
By promoting transparency and accountability in advertising, NAD continues to play an important role in maintaining fair competition in the beauty and personal care industry.
