North Hollywood Company Settles With State, Admits Formaldehyde in Hair Products

The makers of the popular Brazilian Blowout hair straightener, which is manufactured in North Hollywood, have agreed to warn consumers and hair stylists that some of its products .

California Attorney General Kamala D. Harris today announced a settlement Monday thast requires GIB, LLC, which does business under the name Brazilian Blowout, to cease deceptive advertising that describes two of its products as formaldehyde-free and safe. The company must also pay $600,000 in fees and make changes to its website.

"California laws protect consumers and workers and give them fair notice about the health risks associated with the products they use," said Attorney General Harris in a press release. "This settlement requires the company to disclose any hazard so that Californians can make more informed decisions."

According to Harris, the move is the first law enforcement action under California's Safe Cosmetics Act, a right-to-know law enacted in 2005.

In November 2010, the Attorney General's office filed suit against GIB, LLC for violating five state laws, including deceptive advertising because the two products in question contained formaldehyde but were labeled "formaldehyde free."

According to the press release, the settlement requires GIB to pay $300,000 in civil penalties, pay $300,000 to reimburse the Attorney General's office fees and costs, and to:

- Produce a complete and accurate safety information sheet on the two products that includes a Proposition 65 cancer warning; distribute this information to recent product purchasers who may still have product on hand; and distribute it with all future product shipments. The revised safety information sheet -- known as a "Material Safety Data Sheet," or MSDS -- will be posted on the company's web site.

- Affix "CAUTION" stickers to the bottles of the two products to inform stylists of the emission of formaldehyde gas and the need for precautionary measures, including adequate ventilation.

- Cease deceptive advertising of the products as formaldehyde-free and safe; engage in substantial corrective advertising, including honest communications to sales staff regarding product risks; and change numerous aspects of Brazilian Blowout's web site content.

- Retest the two products for total smog-forming chemicals (volatile organic compounds) at two Department of Justice-approved laboratories, and work with DOJ and the Air Resources Board to ensure that those products comply with state air quality regulations.

- Report the presence of formaldehyde in its products to the Safe Cosmetics Program at the Department of Public Health.

- Disclose refund policies to consumers before the products are purchased.

- Require proof of professional licensing before selling "salon use only" products to stylists.