Business
Manufacturer Behind Kylie Cosmetics and KKW Beauty Sues to Keep Coty From Stealing Its Trade Secrets
Published
3 years agoon

- Seed Beauty, the company that manufactures Kim Kardashian West and Kylie Jenner’s makeup lines, believes Kylie Cosmetics gave confidential trade secrets to its competitor, Coty Inc, which Jenner sold 51% of her brand to earlier this year.
- Seed is now suing Kylie Cosmetics and Coty in an effort to stop them from sharing and using those secrets.
- The lawsuit comes just days after Seed won a temporary injunction in a similar case against KKW Beauty, which Coty recently acquired 20% of, preventing it from sharing confidential information as well.
- KKW Beauty denied claims that it shared information with Coty, and though Coty and Kylie Cosmetics have not responded to the lawsuit yet, they will likely argue that Seed’s allegations are speculative and that the secrets it claims Kylie Cosmetics shared aren’t actually trade secrets.
Kardashian-Jenner’s Strike Deals With Coty Inc.
The company behind Kylie Jenner and Kim Kardashian West’s makeup lines, Seed Beauty, is taking legal action to protect its trade secrets now that both stars have massive deals with Coty Inc.
Coty Inc. is the beauty conglomerate that owns brands like CoverGirl, Sally Hansen, Rimmel, and others. It has recently made headlines for striking million-dollar deals with the sisters in what some view as an effort to refresh their image and attract a younger audience. For some time now, Coty has been struggling to keep up with its competitors in the industry, so it seems like their new strategy is to link up with more social media-driven brands like Kardashian West and Jenner’s.
Earlier this year, Coty bought 51% of Kylie Cosmetics for $600 million, and just this week, news broke that Kardashian West sold 20% of KKW Beauty to the company for $200 million.
The deals were huge for the sisters, valuing both of their brands at around $1 billion and leaving them each with net worths of $900 million. However, the deals were pretty concerning for Seed Beauty, which partnered with Jenner since her line started in 2016, taking care of logistics, manufacturing, development, storage, and distribution.
Seed also took on the same responsibilities for KKW Beauty when Kardashian West launched the line in 2017. Now, Seed Beauty is worried that Coty has, and will continue to, get access to the secrets that it believes make Seed a strong force in the beauty industry.
Seed Beauty Sues After Kylie Cosmetics Allegedly Shares Trade Secrets
On June 30, Seed Beauty filed a civil lawsuit against Coty and King Kylie, the LLC behind Kylie Cosmetics, to prevent the misappropriation of trade secrets.
The lawsuit says that because of Coty’s inability to “successfully compete in the new digital cosmetics world through its own innovation,” the company has engaged in a plan “to steal the secret sauce behind Seed,” through its deals with the sisters.
The suit claims, “Coty made a $600 million investment in King Kylie, but it really was a subterfuge to learn Seed’s confidential business methodologies.”
“Any competitor who acquired such information would be given an unfair competitive advantage,” it adds.
The suit also alleges that Kylie Cosmetics knowingly shared Seed Beauty’s confidential intellectual property and Coty knowingly accepted that information. The complaint is highly redacted, so it doesn’t specify the secrets that Seed wants to keep private, but it could include things like information about product formulations, information about the business’ core operations, and the structure of its partnerships, according to Forbes.
Seed says it repeatedly asked Kylie Cosmetics not to share certain parts of their partnership agreement over the course of negotiations with Coty, which were rumored to have begun in June of 2019.
However, according to the suit, Jenner’s team refused to confirm or deny whether or not they had shared information. Seed also says it asked Coty not to ask for, or use, its trade secrets, but Coty similarly refused to assure Seed that it wouldn’t.
Now, Seed Beauty is asking the court to permanently bar Kylie Cosmetics from disclosing it’s trade secrets. It’s also asking that the court force Coty to promise not to use information that it’s already allegedly acquired. On top of that, it wants Coty to be prevented from developing any color cosmetics with Kylie Cosmetics for a period of time that was redacted in the suit.
“This action is to stop Coty’s theft of Seed’s pioneering and proprietary digital-first business model that has revolutionized the cosmetics industry,” the suit says.
Injunction Against KKW Beauty
But again, the Seed’s concerns don’t just focus solely on Coty’s relationship with Kylie Cosmetic. In expectation of a Coty-KKW deal, Seed filed a similar lawsuit against KKW Beauty, also seeking protection of its trade secrets.
Seed filed the lawsuit on June 19, likely after learning from its experience with her sister’s deal. KKW Beauty then filed an opposition to the lawsuit, claiming that Seed’s legal action was an “attempt to stifle the success of the Kardashian-Jenner family.” It also argued that KKW Beauty did not share any trade secrets with Coty and requested that the court compel arbitration.
KKW Beauty lawsuit reads, “The purported harm to Seed is entirely speculative, unfounded, and already complete,”
“By contrast, KKW stands to suffer comparatively more significant harm if the Court were to enter the amorphous injunction proposed by Seed.”
Ultimately, the court granted the temporary order, which lasts until August 21. That order prevents the brand from sharing details about its partnership with Seed, including “the terms of those agreements, information about license use, marketing obligations, product launch and distribution, revenue sharing, intellectual property ownership, specifications, ingredients, formulas, plans and other information about Seed products.”
Still, that court order didn’t stop Kardashian West and Coty from striking a deal, which was formally announced on June 29, and this legal situation is far from over.
It’s likely that Coty and Kylie Cosmetics will both argue that Seed’s allegations are speculative and that the secrets it claims Kylie Cosmetics shared aren’t actually trade secrets.
Still, the legal battles may be worth it in Seed Beauty’s eyes, as it has built itself quite a good reputation in the industry. According to the lawsuit, Seed goes to great lengths to protect its trade secrets by doing things like limiting access to areas of its factory, requiring all employees to sign non-disclosure agreements, and having security monitor the property.
In the Beauty space, Seed is well known for its speed and efficiency thanks to what it calls its “unique business model,” which makes it capable of turning an idea into a product within weeks. The company is not only known for working with the Kardashian-Jenner’s but is also massively successful for its own line, Colourpop Cosmetics, as well as its partnership with YouTuber Tati Westbrook for her new cosmetics line.
So it’s not surprising to see Seed go to great lengths to keep its secrets to success out of its competitor’s hands.
Coty and Kylie Cosmetics have not yet formally responded to the lawsuit or issued a public comment. The first court hearing is scheduled for October, according to Insider.
See what others are saying: (Forbes) (Business Insider) (The Fashion Law)
Business
Amazon to Pay Over $30 Million for Alexa and Ring Privacy Violations
Published
1 week agoon
June 1, 2023By
Star Pralle
Privacy violation charges stack up against the tech giant as the FTC partners up with the DOJ.
Amazon Pays Up
Amazon agreed to a $30 million settlement for each of these complaints over complaints alleging that its Alexa and Ring products violated customer privacy.
The Federal Trade Commission and Justice Department accused Amazon of retaining children’s geolocation data as well as the recordings of their conversations with Alexa. Additionally, the FTC brought another complaint against Amazon’s Ring for violating their customers’ privacy and failing to complement basic security measures.
In addition to the accusations of retaining data, the FTC also charges Amazon with deceiving their customers, saying requests from parents to delete their children’s recordings and other data went ignored despite repeated assurances that parents can delete the data at any time.
Amazon says this data was retained to train their Alexa algorithms to better understand children. But their reasoning does not change law. Their actions are still in violation of the federal Children’s Online Privacy Protection Act, known as COPPA.
“Amazon’s history of misleading parents, keeping children’s recordings indefinitely, and flouting parents’ deletion requests violated COPPA and sacrificed privacy for profits,” said Samuel Levine, the director of the FTC’s Bureau of Consumer Protection in the press release regarding the complaint. “COPPA does not allow companies to keep children’s data forever for any reason, and certainly not to train their algorithms.”
The Settlement’s Details
The proposed settlement that Amazon agreed to on Wednesday includes a $25 million civil penalty as well as requirements to both delete the data in question and never use voice recordings of adults or children in the development or creation of a product again.
However approval on this settlement is still needed from the federal courts.
Despite agreeing to the settlement, Amazon denies violating COPPA, saying they designed Amazon Kids for parents to have full control and to comply with the law.
In their complaint against Ring, the FTC accused the company of violating their customers’ privacy by allowing countless employees and hundreds of contractors access to the videos from Ring cameras.
Leading to situations like one in 2017, when a Ring employee watched thousands of videos belonging to dozens of female customers, including those in their bedrooms and bathrooms.
Additionally, the FTC says that Ring did not implement basic security protections for years which allowed hackers to take control of their customers’ accounts, cameras, and videos leading to 55,000 US Ring customers facing hacker attacks. In some cases, hackers could access Ring’s two-way functions to harass, insult, and threaten people – including children. The complaint alleges that Ring’s egregious privacy failings lasted for at least 4 years – between at least 2016 to 2020.
Amazon responded to the complaint saying that RIng had addressed the concerns before the FTC even began their inquiry.
The FTC proposed a settlement of $5.8 million in consumer refunds – as well as a demand for Ring to create a privacy and security program. The settlement also awaits federal court approval.
See what others are saying: (New York Times) (Axios) (CNBC)

Some have accused the company of joining a woke “cult” after learning of its diversity, equity, and inclusion initiative.
Chick-fil-A Goes “Woke”
Conservatives are condemning Chick-fil-A after learning of the fast food chain’s commitments to diversity, equity, and inclusion.
Some have accused the brand of bowing “to the Woke mob.” Others have debated boycotting the chain.
Chick-fil-a bowed the knee to the Woke mob.
— Smash Baals (@smashbaals) May 30, 2023
https://t.co/chhvwmglko
We have a problem.
— Joey Mannarino (@JoeyMannarinoUS) May 30, 2023
Chick-Fil-A just hired a VP of Diversity, Equity and Inclusion.
This is bad. Very bad.
I don’t want to have to boycott.
Are we going to have to boycott?
It’s unclear when exactly Chick-fil-A began its DEI campaign, but according to LinkedIn, the current Vice President of DEI, Erick McReynolds, has been working in the department since 2020 before taking on his current role in 2021. It is also unclear why right-wingers on Twitter have just now discovered Chick-fil-A’s DEI website, but many spent a chunk of Tuesday morning lambasting the company for working to promote diversity.
Chick-fil-A’s DEI page is titled “Committed to being Better at Together.”
“Modeling care for others starts in the restaurant, and we are committed to ensuring mutual respect, understanding and dignity everywhere we do business,” McReynolds said in a statement on the website.
Chick-fil-A is no stranger to boycott campaigns, though those efforts usually come from the opposite side of the political aisle. The company, known for its strong Christian ties, has been criticized for donating to groups with anti-LGBTQ missions. As a result, many on the left have refused to eat there, while it has been a haven for those on the right.
Conservatives, however, have become increasingly outraged by DEI initiatives. Chick-fil-A’s website, which only vaguely outlines its DEI efforts, still seems to be enough for the right to change its tune about the brand.
“Even our beloved Chick-Fil-A has fallen to the DEI cult,” one person tweeted. “the same agenda that is turning our beloved military woke.”
Even our beloved Chick-Fil-A has fallen to the DEI cult (Diversity, Equity, Inclusion); the same agenda that is turning our beloved military woke.
— Caroline Kane for Congress (@CarolineKaneTX) May 30, 2023
This is what happens when we’ve allowed this Environmental, Social, and Governance score (ESG), pushed by anonymous Boards of…
“It’s becoming an epidemic that even Christian companies are being strong-armed to participate in,” the tweet continued.
Old Clip of Chairman Resurfaces
Some have also started resurfacing an old clip of Chick-fil-A Chairman Dan Cathy speaking on a panel about racism during the summer of 2020. During the discussion, he talked about repentance and said that if you ever see someone who needs their shoes shined, you should do it. He then walked over to a Black person on the panel, got on his knees, and shined their shoes.
“There’s a time in which we need to have, you know, some personal action here, and maybe we need to give them a hug, too,” Cathy said while shining the shoes.
“I bought about 1,500 of these and I gave them to all our Chick-fil-A operators and staff a number of years ago,” Cathy continued, in reference to his shoe-shining brush. “So, any expressions of a contrite heart, of a sense of humility, a sense of shame, a sense of embarrassment begat with an apologetic heart — I think that’s what our world needs to hear today.”
The clip caused a stir when the events first unfolded, and has prompted a new wave of anger now. Some are accusing Cathy of being “a woke, anti-American, anti-white BLM boot licker” who thinks all white people need to shamefully shine the shoes of Black people to apologize for racism, though that is not what he said.
Chick-Fil-A CEO Dan Cathy says ALL whites should get on their knees and shine black peoples’ shoes with "a sense of shame, a sense of embarrassment". pic.twitter.com/KlEotHowWU
— Stew Peters (@realstewpeters) May 30, 2023
The guy running chick-fil-A is a woke, anti-American, anti-white BLM boot licker. https://t.co/vwgYqzCX9J
— Mr. America (@ConservativesSo) May 30, 2023
These boycott calls are just the latest from conservatives who have been on a rampage against any company supporting any social cause they deem as “woke.” Earlier this year, the political right took a stand against Bud Light after it included a trans influencer in a sponsored Instagram post. Just last week, Target and Kohls faced boycotts over items in their Pride Month collections.
See what others are saying: (The Hill) (Rolling Stone) (AL)
Business
Bioré Apologizes For Referencing School Shooting in Mental Health Ad Campaign
Published
2 weeks agoon
May 23, 2023
“Our tonality was completely inappropriate. We are so sorry,” the skincare brand said.
Video Faces Backlash
The skincare brand Bioré apologized this week for partnering with a school shooting survivor as part of its Mental Health Awareness Month campaign.
“We are committed to continuing our mental health mission, but we promise to do it in a better way,” the company said in an Instagram post on Sunday.
Last week, influencer and recent Michigan State University graduate Cecilee Max-Brown posted a video to TikTok sponsored by Bioré where she discussed the numerous challenges she had faced throughout the year. Among them was a school shooting on her college’s campus, which killed three people in February.
“Life has thrown countless obstacles at me this year, from the school shooting to having no idea what life is going to look like after college,” Max-Brown says in the video. “In honor of mental health awareness month, I’m partnering with Bioré skin care to strip away the stigma of anxiety.
“We want you to get it all out, not only what’s in your pores, but most importantly, what’s on your mind, too,” she continued.
In the 50-second video, Max-Brown went on to discuss more details about her mental health struggles, as well as how “seeing the effects of gun violence firsthand” has impacted her and led to “countless anxiety attacks.”
“I will never forget the feeling of terror that I had walking around campus for weeks in a place I considered home,” she said before closing the video by encouraging her followers to participate in Bioré’s mental health campaign.
Bioré Apologizes
The video ignited swift outrage from people who accused Bioré of using a school shooting to sell products. In its apology, the brand admitted the video was misguided.
In the past, Bioré said it has worked with influencers to discuss and reduce mental health stigmas, as the subject is a top priority for its consumers.
“This time, however, we did it the wrong way,” the company said. “We lacked sensitivity around an incredibly serious tragedy, and our tonality was completely inappropriate. We are so sorry.”
Max-Brown also apologized on TikTok, writing that the video was intended to spread awareness, not suggest a product fixed the struggles she has experienced as a result of the shooting.
“I did not mean to desensitize the traumatic event that took place as I know the effects that it has had on me and the Spartan community,” she wrote.
Max-Brown has since removed the initial sponsored video from her account.
See what others are saying: (The New York Times) (NBC News) (The Independent)

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