Business law: Cosmetics retailer sued for selling used goods

On Behalf of | Feb 22, 2018 | Business Law

Businesses have a lot of issues that must be dealt with on a consistent basis. Many of these matters have a direct impact on a business’s bottom line. Whether it is a contract dispute that threatens to slow the delivery or sale of a product, an intellectual property infringement that waters down the potency of a company’s trademark or allegations made by consumers that threaten a business’s reputation, business law disputes can eat into profits. This is why businesses need to diligently work to protect themselves, regardless of the allegations that are made against them.

Cosmetics retailer Ulta has found itself in this position after being hit two lawsuits alleging that the company repackages returned items and markets and sells them as if they are new. Although the company has a policy whereby customers are asked if their returned products have been used and, if so, they are marked as damages, former employees claim that only a portion of these used cosmetics are actually marked as damaged. According to them, a significant amount of these goods wind up on the shelf being sold as if they are new. The lawsuit claims that, as a result of this practice, customers were unknowingly exposed to harmful bacteria, which could include those that are quite serious, like E. coli.

These claims have come to light after a former employee took to Twitter to allege the wrongful practices she was forced to practice. This highlights the importance of businesses monitoring their employees and social media to spot any potential legal issues. By getting ahead of the curve, Ulta may have been able to avoid litigation and the potential damage that could be caused to its brand.

Business litigation can be challenging, and there is often a lot at stake. Therefore, businesses owe it to themselves to ensure that they are putting forth the best legal arguments they can to support their positions. Oftentimes, qualified attorneys are best suited for building these cases. Those who feel like they could benefit from legal assistance in these types of matters should consult with an attorney of their choosing.


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