The Honest Company

This week, our group presented on the case of Lululemon and their commitment to the environment. They claimed “Corporate Social Responsibility” and prided themselves in their innovative approaches to the environment, specifically in using environmentally friendly fibers such those found in their VitaSea line. They claimed to make athletic leggings with a seaweed-based fiber that promised health and beauty benefits. However, when tested, the results could not conclusively prove seaweed was a component in the fiber.

Much like this scandal, Jessica Alba’s “The Honest Company” has faced similar problems with environmental ethics. With a company that “prides itself on truthful marketing and using only safe, non toxic ingredients in its household cleaners, diapers, and personal care products,” why then is it facing a toxic scandal? The Honest Company faced backlash for using a chemical ingredient in their laundry detergent that the labeling promises is not contained within. Sodium Lauryl Sulfate (SLS) can irritate the eyes and skin has been linked to being toxic. So, in light of the scandal, samples of the laundry detergent were sent to independent labs in order to discover if “The Honest Company” was, in fact, being honest. Both results were positive with a representative from one of the labs (Impact Analytical) confirming “there is a significant amount of sodium lauryl sulfate (in the detergent).” “The Honest Company,” dissatisfied with the results, decided to conduct their own test. Their results were negative. However, their lab results came from the company’s chemical supplier, who didn’t test for the presence of SLC.

Still, the company denied all claims and the company began to explain that the surfactant Sodium Coco Sulfate, which like SLS is derived from coconut oil, was, in fact, the natural chemical alternative actually in the detergent. This is not the first allegations of false advertisement that the company has faced and with their reputation in jeopardy, “The Honest Company” should figure out how they are going to gain back their customer's trust. Rather than lying about great ingredients they could stick to just presenting the ingredient they do use in a simple way. Their value proposition focuses on natural ingredients; in addition, parents, who are the company's main customers, don't have to worry about the products being bad for the kids. Honest should move back towards natural and simple ingredients instead of creating false claims that they cannot live up to.

The Honest company agreed to pay $1.55 million to settle the lawsuit for the laundry detergent debacle (CNN). This isn't the first lawsuit that the company has had to deal with, yet it's customers continue to stay very devoted. It probably doesn't help that Jessica Alba, a very famous celebrity, is the face of the company. Anytime a celebrity is involved with anything, there is immediately a ton of attention drawn to the situation, which then can lead to controversy. Although the lawsuit has been settled the company still denies any wrongdoing in the case of the detergent. The company continues to grow every year and even has an estimated worth of $1.7 billion in 2015 (CNN). For the time being the company is still growing; however, with every lawsuit or scandal, the company takes another hit to its brand. How many more punches can the Honest company take before knocking out? Only time will tell.

-Group 5: Kelley Brennan, Keely Watland, Ashley Arcos, Daniel Begazo


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