Business Intelligence on Retailing, Franchising, and Consumerism in China

Cosmetics Brands Accused Of False Advertising

Because of over-exaggeration of their products' effectiveness, many cosmetic brands including Head & Shoulders, Olay, and and L'Oreal have been targeted by the Shanghai Department of Industry and Commerce for false advertising.

According to local media, the latest statistics of SDIC show that the illegal advertisements of cosmetics has increased dramatically and in May, cosmetics accounted for 19% of the illegal advertisements in Shanghai, compared to the 0.02% in January, and of the top ten illegal advertisements, nine were about cosmetics.

The illegal advertisements involved Head & Shoulders Anti-dandruff Shampoo, Olay Definity Foam, L'Oreal White Perfect Deep Whitening Double Essence. They are accused of overstating their functions and performances.

Representatives from all the concerned brands have told local media that they have either revised or stopped broadcasting their respective advertisements in Shanghai.

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