The Honest Company has set aside a US$7.35 million fund for the plaintiffs of a proposed class action suit that accuses the brand, owned by Jessica Alba, of fraudulent use of marketing terms such as ‘no harsh chemicals’ and ‘natural’, according to a report published by Reuters.
The suit was filed a fortnight ago in Manhattan, and is currently pending approval by a judge. The sum represents the second such settlement the company has made in the space of a month.
The fund will be distributed to consumers at a rate of US£2.50 credit or payment per product for up to 10 products for those who fail to provide proof of payment, and an unlimited number for those who can evidence their purchase. The company has also pledged to adjust its labelling practises, however, it denies wrongdoing.
“This settlement in no way changes the fact that our marketing practices are entirely appropriate and we will continue to market products as ‘natural’,” said the company in a statement.