As reported by NATIVE EXTRACTS legal team Dundas Lawyers “Plant Extracts Pty Ltd & Ross Macdougald admit misleading conduct – ordered to publish corrective notices” on 13th of November 2023.
Skincare brand Biologi breached the Australian Consumer Law – ordered to publish 5 corrective notices - https://www.dundaslawyers.com.au/skincare-brand-biologi-breached-the-australian-consumer-law-ordered-to-publish-5-corrective-notices/
In a significant turn of events for the Australian skincare industry, a Federal Court case involving Native Extracts' Lisa Carroll and Ross Macdougald's Biologi and Plant Extracts has culminated in a decisive ruling, with the expedition of orders ahead of the final judgement concerning the quantum (amount) of the Native Extracts parties loss and damages as result of the admitted conduct of Ross Macdougald and the Macdougald parties.
The case, which has garnered widespread attention, highlights the pervasive issue of misleading and deceptive conduct in the cosmetics sector, it’s catalysed a ground swell of discussions on line, reactions from influencers and stockists distancing themselves as they process how they fell about being involved in this deception!
Today stockists, brands, and customers are having to decide what they chose to believe and what they will do about it.
Jennifer Rudd of Skincare Business Foundations reported: “BioLIEgi: Unpacking the recent Biologi court findings and what it means for the cosmetic industry” by Jennifer Rudd, Risk & Compliance Consultant, of Skincare Business Foundations sheds light on industry-wide calls for transparency, integrity, and the critical lessons for cosmetic brands navigating ethical business practices."
The court expedited the judgement confirmed allegations against Biologi and Plant Extracts, including falsified claims about product testing, organic certification, and ingredient purity. These revelations have sent ripples through the industry, prompting a re-evaluation of ethical practices and consumer trust.
Downes J said at paragraph 9 of the judgement that:
“As third parties (namely existing and potential customers) were likely being misled by the impugned conduct, I made this order at the conclusion of the trial rather than waiting for the final judgment to be handed down. I was particularly concerned that the injunctions be issued and that the corrective advertising occur as soon as possible. I am grateful to the parties for reaching agreement about the form of orders”.
Lisa Carroll, representing Native Extracts, spearheaded the legal battle following the discovery of modified Certificates of Analysis and unauthorized use of the Organic Food Chain logo by Biologi.
This case underscores the importance of transparency in the skincare industry. With the court expediting injunctions and mandating corrective notices by Biologi and Plant Extracts to be advertised as soon as possible. We believe, the verdict marks a watershed moment for industry integrity.
The impact of the court's decision extends beyond the courtroom. Many skincare brands and stockists are now grappling with the implications of this ruling, especially during key sales periods like Black Friday and Christmas. Retailers Biome and The Iconic has ceased selling Biologi products until concerns about ingredient transparency and honesty are addressed.
For consumers, the case serves as a stark reminder of the need for vigilance and informed choices in the skincare market. Media coverage, the court's findings have raised awareness about the prevalence of deceptive practices in the industry.
The article further emphasizes the importance of ethical business conduct. Key lessons for skincare brands include maintaining honesty and transparency, regular compliance checks, fair competition, and taking accountability for business operations.
This case stands as a beacon for the cosmetics industry, stressing the significance of adhering to consumer laws and being truthful in their pursuit of ethical practices. It not only serves as a cautionary tale but also as a call to action for cosmetic industry to uphold the highest standards of integrity and transparency.
Other press published on the issue:
- Cosmetic Fraud (R. Macdougald, Plant Extracts, Biologi) Unveiled (by Lisa Carroll) | Daily Straits | 14.11.2023
- Byron cosmetics baron found to be spruiking fake ingredient | Daily Telegraph | 13.11.2023
- Entrepreneur proves ex-boyfriend faked 'natural' cosmetics range | Australian Financial Review | 9.11.2024