Dive Brief:
- The Washington State Attorney General's Office says makeup brand Julep Beauty will play $3 million in fines for allegedly deceptive marketing practices from 2012 to 2015, according to a press release.
- The AG alleged a promotion that encouraged consumers to sign up for a free box of makeup also signed customers up for a paid subscription. The AG said the brand "did not adequately disclose" that customers were signing up for a paid subscription and that consumers found it "very difficult" to cancel their subscriptions.
- In a statement, Julep CEO Jane Park said: “I want to take this opportunity to acknowledge and take responsibility for Julep’s previous practices that formed the basis of the AG’s lawsuit that was settled and announced today.” However, Park said it had already issued $1.5 million in refunds before the case, the settlement only requires Julep to pay $500K, and that the settlement does not represent an admission that the marketing was deceptive, according to the Seattle Times.
Dive Insight:
The Julep Beauty case underscores the importance of transparency in marketing. Brands should make sure to be open and clear in all their messaging and marketing materials, from honoring email unsubscribe requests to addressing customer service questions on social media.
Transparent marketing is a good way to build trust and respect in a brand. In particular, brands should be careful not to deceive consumers on social media, which is new territory for regulators. The FTC is cracking down on brands running influencer campaigns on social media that don’t honor disclosure requirements.