Additionally, the law firm that undertook the case confirmed that consumers who contend they had been harmed by the product would receive a $35 payment for each treatment they had a beauty salon, to include a maximum of three treatments.
The compensation also concerned hair salon stylists who had given the treatment to their clients. The settlement means they will receive $75 for each bottle of product that they purchased for use in the salon.
The ruling, which was made by the Los Angeles Superior Court, in California, where GIB is also based, was approved on Tuesday.
No re-formulation required
Michael Brady, Brazilian Blowout’s chief executive, told New York Times that the proposed settlement would be paid by his insurance company. “We get to sell the product forever without reformulation. In my eyes, that’s the acquittal we’ve been waiting for,” he told the paper.
However, lobby group Campaign for Safe Cosmetics described the ruling as ‘outrageous’.
“This scandal is the perfect example of how cosmetic regulations are totally failing to protect public health, even in the case of obvious and proven dangers,” said Stacy Malkan, co-founder of the Campaign for Safe Cosmetics.
“Thankfully, brave hairstylists are speaking out about what's really going on in salons - about the pressure to be silent, the misinformation and the risks to everyone who walks into a salon,” she said.
Brazilian Blowout ticked off for deceptive advertising
Back in January of this year California law courts ruled that a settlement with the manufacturer of Brazilian Blowout products would require the company to warn consumers and hair stylists that two of its most popular hair smoothing products emit formaldehyde gas.
The settlement required GIB to cease deceptive advertising that describes two of its popular products as formaldehyde-free and safe. The company was also ordered to make significant changes to its website and pay $600,000 in fees, penalties and costs.
"California laws protect consumers and workers and give them fair notice about the health risks associated with the products they use," said Attorney General Harris at the time of the ruling.
"This settlement requires the company to disclose any hazard so that Californians can make more informed decisions."