In response to a Fast-Track SWIFT challenge brought by Mielle Organics, LLC, BBB National Programs’ National Advertising Division (NAD) announced that Kreyol Essence, LLC voluntarily discontinued challenged influencer advertising.
NAD determined that Kreyol Essence had failed to disclose the financial relationship between the company and a social media influencer, prompting concerns over transparency in advertising.
About the challenge and NAD determination
The challenge, filed by Mielle Organics—a Procter & Gamble Company subsidiary and a direct competitor of Kreyol Essence in the beauty and personal care market—focused on posts by hair influencer Laura Benoit. Benoit had promoted Kreyol Essence’s products on platforms such as TikTok, Facebook, and YouTube.
According to NAD, the posts did not clearly or conspicuously disclose the influencer’s material connection with Kreyol Essence, violating standards for advertising transparency.
“Although Kreyol Essence had already made efforts to remove the challenged claims before the filing of the challenge, NAD found that the challenged advertising continued to appear in the marketplace after the challenge was filed,” stated NAD in its decision summary.
The Fast-Track SWIFT process, under which this case was reviewed, is designed to quickly resolve single-issue advertising disputes, ensuring minimal disruption to the market. During the inquiry, Kreyol Essence informed NAD that it had voluntarily discontinued all challenged advertising, effectively addressing the concerns raised in the complaint.
“For compliance purposes, NAD will consider the discontinued claims as though they were recommended for discontinuation by NAD,” the organization noted. This means that while Kreyol Essence voluntarily addressed the issue, NAD’s decision will still serve as a formal benchmark for compliance going forward.
In its advertiser statement, Kreyol Essence expressed its intent to align with the NAD’s guidance and “will comply with NAD’s recommendations,” the company stated.
Implications for the beauty and personal care industry
NAD’s decision underscores the importance of adhering to established advertising standards, particularly in influencer marketing—a growing channel for beauty and personal care brands. Influencer endorsements can be highly effective in reaching target audiences, but they also carry significant regulatory and reputational risks when transparency requirements are not met.
The case highlights the need for vigilance in monitoring influencer partnerships for manufacturers and suppliers in the cosmetics and personal care sector. According to the Federal Trade Commission (FTC) guidelines, any material connection between a brand and an influencer must be disclosed clearly and conspicuously to avoid misleading consumers.
Failure to do so risks regulatory scrutiny and can lead to industry challenges like the one filed by Mielle Organics.
This case also demonstrates the competitive nature of the industry. As noted by BBB National Programs, the Fast-Track SWIFT process is “an expedited procedure aimed at resolving single-issue advertising cases efficiently,” which can be critical in high-stakes markets where advertising claims have the potential to shift consumer perceptions and market share.
The NAD’s findings and Kreyol Essence’s response should remind industry stakeholders about the importance of proactive compliance. Even when brands address potential concerns, lingering non-compliant advertising in the marketplace can still attract challenges.
By fostering transparency and accountability in advertising, NAD continues to play a critical role in maintaining fair competition in the beauty and personal care industry.
