The FTC has prohibited Sunday Riley from misrepresenting the status of a person reviewing products. The commission also ordered Sunday Riley to instruct its employees and agents to disclose their affiliations with the company in notes in accordance with the order.
Neither the company nor Sunday Riley, its namesake, admitted or denied that any wrongdoing was committed, severely rebuking FTC commissioners Rohit Chopra and Rebecca Kelly Slaughter.
"Sunday Riley and his CEO have clearly violated the law, and the commission has ordered that they do not violate the law again."
The results of the Sunday-Riley comparison should send out a strong message. However, the two dissenting commissioners found that the FTC's decision is unlikely to deter other alleged evildoers.
Questions about Sunday Riley's ethical practices swirled around last year when a former employee went to Reddit and disrupted the company's business.
] "We were forced to continuously write fake reviews for our products, which came directly from Sunday Riley herself and her sales manager," the Reddit user wrote, adding a copy of an e-mail with instructions for publishing fake reviews
The FTC said that its investigation into Riley and her company confirmed the whistleblower's claim.
In July 201
6, Riley provided a nine-step guide to creating three Sephora.com accounts that were registered as distinct identities to positively write reviews for his products, following the allegations of the complaint. Some of the instructions prompted employees to check the products every other day to build up the history and only check make-up, color and hair.
In late July 2016, she asked her staff to reject negative reviews for a good reason Dislikes will have removed the negative reviews. That, she wrote, "translates directly into the sale!"
"Tidal and good genes are 4.2 and I would like to see them at 4.8+," she wrote about some of her favorite products. "UFO and Martian are at 4.9 – let's stay that way!"
Similar reminders were sent to employees and other managers by Sephora's Account Manager, as were other products introduced in December 2016 and August 2017.
"Credibility is the key to the review," wrote Sephora's Account Manager for Sunday Riley Skincare, who also pointed out how meaningful valuations are when people look at what others say. " to convince them and answer possible questions, "the complaint said.
After Sephora Removed Wrong Reviews from Skin Care Brand employees used a virtual private network to hide their IP addresses and locations.
Neither Sunday Riley nor Sephora responded to comment requests.
Sunday Riley and her company deceived consumers for their own benefit, said David Vladeck, a professor of law at Georgetown University and former director of the FTC Consumer Protection Bureau Agency has the dual purpose of attracting consumers and competition in the market and has set strict guidelines for companies, he said.
"This is the kind of case the FTC is doing because the FTC does not have resources for everyone," he said. "Looking for people, they are looking for people who are market players and have been abusive in the marketplace."
According to Glassdoor, Sunday Riley's revenue is estimated at $ 50 million to $ 100 million.
The brand Special thanks go to the big retailers like Nordstrom and Bergdof Goodman who offer their products. In April, United Airlines partnered with the skin care company to provide its Business Class and other elite passengers with Sunday Riley kits. The company announced that Sunday Riley products would also be available in shower facilities at United Lounge's various lounge and club locations.
The reputation of the brand has also increased, as more celebrities have awarded her together with beauty influencers a seal of approval. However, the news did not surprise the influencers in science and skin care.
According to Victoria Fu, co-founder and chemist of Chemist Confessions, Sunday Riley's comments have been jumbled for a few years in a jumble of ingredients for devotees who want to know about the science of skincare.
"It would be nice if the FTC Sunday Riley could serve as a role model, but on the other hand they are not the only ones," she said.
Cosmetic formulator and skincare expert Stephen Alain Ko also has a loyal following of skin care and science enthusiasts. He has taken a picture of a Sunday Riley product with the FTC results and a lyrics from the Foo Fighters hit "Best Of You".
The company had previously had problems with the clarity of marketing, but he is more surprised than the CEO of One company would be reckless enough to write unethical instructions to employees.
If influencers have supported the brand in the past, they should stand by these statements – as long as what they said is true, Ko said.
"I need to go straight for it and just be patient," he said of Sunday Riley's ability to recover. "If the product is good and the company is good, it will come back."
If it does not come out as authentic, the road back to consumer confidence becomes much more difficult.