Wednesday, August 27, 2008

Counterfeit of Everyday Items

I truly hope that each day, more and more people become aware of the risks associated with purchasing products that could potentially be counterfeit and especially those that touch your body.

I recently read a story in the NY Daily News about “counterfeit Colgate toothpaste contaminated with bacteria and a chemical used in antifreeze.” It’s really a shame that there are products out there, being distributed through unauthorized channels and that consumers are exposed to such dangers in products that they use everyday and that their families and children are exposed to.

In my opinion, the highlight of the article was this quote:
"A parent should never have to fear that buying an everyday item like toothpaste could put a family at risk," Assistant U.S. Attorney General Matthew Friedrich said Thursday in Brooklyn Federal Court.

I can’t reinforce enough the importance of knowing where your products come from. In our industry, the only sources you can ultimately trust are the salons and respective brand websites.

Counterfeit Fragrances

I have been following the issues that cosmetic companies including our counterparts are facing regarding counterfeit perfumes as many of the challenges are similar to those we face in salon products being sold in unauthorized outlets such as grocery stores and mass retailers. I came across this article (link to article) about the differences regarding a Coco Mademoiselle product sold on eBay versus sold at the Chanel counter of a department store. The author of the article points out that the first thing to look at if a product is real is the pricing. If the price is too good to be true, then you should be suspicious the product is fake. Ironically, with professional haircare in the United States, we find that diverted products are expensive in mass. He also points out to examine the packaging as well which is something we found with products sold outside of our salon partners. His article concludes that the product sold on eBay was fake.

I want to reinforce the “three C’s” for salon products sold in unauthorized outlets—Counterfeit, Contamination and Cost.” As Good Morning America and ABC15 have reported, the “bargain” you think you are purchasing in your discount store appeared to be watered down and packaging was not in the original materials and was very noticeable in the cap. Unlike the fragrance industry, we learned that you are not getting a better deal when you purchase outside of an authorized salon. News outlets such as ABC and Good Morning America continue to show that you are paying MORE than you would from your hairdresser.

Tuesday, August 26, 2008

L’Oreal Against eBay

I was disappointed to learn that Belgian courts dismissed L’Oreal’s claims brought against eBay over the sale of counterfeit Lancome fragrances and cosmetics on the site. The Lancome brand is part of our L’Oreal family under our Consumer Luxury division.

Because of the demand, performance and popularity of many of brands including our salon professional products, our company is challenged across all brands to educate our customers about the risks of purchasing products outside of authorized retail channels such as eBay. Across our global organization, L’Oreal is fighting to ensure that when you purchase one of our brands you are receiving an authentic and safe product. Remember, cosmetics, hair products and fragrances touch your body and our company’s high level of quality control for all of our products ensures that you are using products that include ingredients displayed on the packaging. L’Oreal is appealing this decision. I’ll keep you posted as developments occur and how this impacts our Professional Products division!

Thursday, August 21, 2008

Bloggers Unite

Recently, I have been browsing blogs where I see bloggers write posts and comments about purchasing professional products. Unfortunately, since a lot of people are still not aware that diversion is a problem, they encourage readers to purchase these at unauthorized outlets. This concerns us.

We know that if they knew the facts about diversion, they would not post this type of information. If you spot a blog like this, please take the opportunity to help protect your fellow bloggers. Write a comment and let them know that if they buy professional products from unauthorized retailers, they could be contaminated, counterfeit and even cost more.

I strongly believe that if we work together we can help spread the word.

Thank you for your help.

David

Tuesday, August 19, 2008

The Quality King Story

I have received several comments asking if we have ever taken legal action against diverters, as well as some addressing the lawsuit between L'Oreal and Quality King (one of the country's leading grey market wholesalers of salon products), regarding the unauthorized sale of our products.

To give you some background information - in 2004 the Professional Products Division of L'Oreal USA, Inc., served a motion for contempt against Quality King Distributors, Inc. (Quality King), and related companies for repeated violations of an injunction stemming from the gray market wholesaler's buying and selling L'Oréal's Matrix professional salon brand.

According to the court papers, Quality King, based in Ronkonkoma, NY, acting independently and with several related companies, violated a longstanding court order prohibiting it from acquiring and redistributing the Matrix brand. L'Oréal USA's Professional Products Division produces this brand, among others, exclusively for use and sale by professional hairdressers at authorized salons.

It is true that in November 2007, after three years in litigation, a judge lifted a 1990 injunction that prohibited Quality King from selling Matrix. We were very surprised by the ruling because all we were asking was that the court enforce its own order. We believe the 1990 ban should be reinstated and have already filed for an appeal.

Wednesday, August 13, 2008

US Quality Guarantee Policy

I wanted to take this opportunity to clarify that for now, the Quality Guarantee Policy that the L'Oréal Professional Products division launched is currently for the US only. We are working with our international offices to branch out the policy, but currently this policy is valid only in the US.

Remember, if you purchase our products at your local salon or spa and you're not satisfied with their performance, return the product with a receipt within 4 weeks for a full refund. See you salon or stylist or brand product website for more information.