When it comes to labels, consider your words carefully. Jessica Alba’s Honest Company is having to address a $5 million class-action lawsuit that alleges her products don’t live up to their “natural and effective” claims, according to an article in L.A. Biz.

Notes article writer Annlee Ellingson, “…A class-action complaint has accused Jessica Alba’s Honest Company of not being so. Jonathan D. Rubin has sued the Santa Monica, CA, startup, in US District Court of Northern California for ‘deceptively and misleadingly’ labeling and marketing its nontoxic and eco-friendly baby, bath and body, and cleaning products. The complaint alleges that Honest labels and markets its products as ‘natural and effective,’ but four items – the company’s hand soap, dish soap, diapers and multi-surface cleaner – ‘contain unnatural ingredients’…The lawsuit comes on the heels of a $100 million funding round that values Honest at $1.7 billion.”

Decisions about label terminology, especially when making health or purity claims, merit close scrutiny and care. Words like “natural” often get tossed around without clear standards, which leaves interpretation largely in the minds of the consuming public. While they may seem benign at the outset, it only takes one disgruntled buyer to wreak havoc – potentially imperiling manufacturer reputation, marketplace standing and investor confidence in the process.

Regardless of the outcome of this lawsuit, odds are the price will be high. In today’s “transparency and authenticity rule” environment, the ripple effects also may require time-consuming and extensive damage control. Once a product’s reputation has been questioned, buyers and prospective buyers may hesitate to buy and go instead to a direct competitor whose name hasn’t been sullied.

If product claims are questionable, consumers may be left wondering what else was done without due consideration – including testing, manufacturing processes, et al. In short, once consumer (and investor) confidence is damaged, manufacturers often must walk a long road to recovery. And, it doesn’t help that the name is the “Honest Company.”

The following are ways for proactive manufacturers to help avoid this type of marketplace malady (notice we say “help avoid” because in today’s litigation-manic business world, no one is bulletproof):
1. When making any health/purity claim, first research legal/regulatory definitions that provide clear direction. Generally, when in doubt, don’t use words that may come back to cut like a very expensive knife. “Natural” can be one of those words.

2. Once use of particular claims/terminology have been verified on legal/regulatory grounds, consider the perception perspective. If there is substantial misunderstanding or misinterpretation by the consuming public, it may be better to alter the verbiage to be more “perception compliant.” This can be tested through discussions with consumers, through more formal focus groups, and increasingly using the power of crowdsourcing to provide insights and feedback.

3. Use the verbiage-vetting process itself as an opportunity to do some pre-release marketing and research. Here’s where crowdsourcing can prove invaluable. Instead of developing everything, and only then testing it, use the power of the crowd to come up with ideas about the most accurate and defensible terminology and how best to present it.

4. Let your buyers (and possibly other stakeholders) supply the claims. Instead of making a declarative claim about “natural” on labels, let buyers make the claims and attribute them in labels and other marketing efforts. If a buyer uses the word “natural” or phraseology like “100% effective” in addressing product use, the manufacturer may be on much safer ground to use it. Notice the word “may” in the previous sentence. Again, in today’s litigious environment, run everything of consequence by trusted legal counsel before finalizing it on a label.

When buyers endorse or provide testimonial comments, make sure to confirm in writing their approval to use them in public-facing marketing. Do this even if their comments appear in a public review (unless you’re just linking to their original review) – especially for such “permanent” fixtures as labels. This virtually eliminates the possibility of a misunderstanding where the provider of the comments didn’t realize they would be used beyond the scope of their original intent. Also make sure that attribution offers a real full name and description of the relationship with the person making the comments.

5. Be uber-transparent. In all marketing, including labels where feasible, go beyond legal and regulatory requirements in an effort to reassure consumers that products not only meet, but hopefully beat, the claims. This establishes confidence that a manufacturer is doing everything it can to provide full disclosure and accountability – ahead of any potential potholes. Then, if problems occur beyond anyone’s “crystal ball,” this type of transparency can go a long way, both legally and in the realm of reputation management, to save the day.



Mark Lusky is a marketing communications professional who has worked with Lightning Labels, an all-digital custom label printer in Denver, CO, USA, since 2008. Find Lightning Labels on Facebook for special offers and label printing news.