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Huda Beauty to pay almost $2 mln to settle dispute over Neon Obsessions palette

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Dubai-based makeup brand Huda Beauty is set to pay almost $2 million to settle a two-year dispute related to its Neon Obsessions eyeshadow palette, according to a US court ruling.

Founded by influencer Huda Kattan, the cosmetics brand was accused of using substances banned by the US Food and Drug Administration (FDA) in its Neon Obsessions eyeshadow palettes.

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In a ruling filed in a California court last week, Judge Jesus Bernal approved the settlement which will see the cosmetics company pay out $1.9 million on top of the $1.2 million in legal fees for the plaintiffs who filed the lawsuit, and up to $545,000 plus processing fees to settle the case with customers. Purchasers of the palette can also claim a refund of up to $87.

After some pigments in the products were found to have eye irritating and staining properties, the brand added a warning label, noting that the product was not suitable to be used on or around the eye area.

However, according to purchasers of the palette, Huda Beauty’s warning label, including the list of FDA-prohibited ingredients, was concealed and advertised the same way as the brand’s other palettes.

Earlier this year, consumers sued the US distributors HB USA Holdings claiming laws were violated when it came to the marketing and sale of the product, a settlement document last updated on June 13 showed.

They said that the products were unlawfully marketed in the US for use around the eye area as Huda Beauty failed to disclose information about the potential dangers of applying the product to one’s eyelids.

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