Florida-based beauty brand Truly Organic must pay $1.76 million in a settlement it reached with the Federal Trade Commission (FTC) over making false claims. The FTC found that Truly Organic’s ingredients did not match its “organic” and “vegan” labels, with some products containing non-organic ingredients, dairy-derived protein lactose, and honey. FTC Commissioner Rohit Chopra explained during its hearing that Truly Organic’s falsified claims harmed both consumers (who were looking to buy organic and animal-free products) and other beauty brands that truthfully make these claims. Truly Organic—which sells its products at retailers such as Urban Outfitters and Ulta—did not admit nor deny the FTC’s claims during the settlement proceedings. “These kinds of lies are rare—but they do occur,” Kathy Guillermo, senior vice president of animal-rights group People for the Ethical Treatment of Animals, said. “Most company executives are either more ethical or more realistic about getting caught. We support the FTC’s important work here, which is crucial for both consumers and animals.”
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