NAD endorses Drunk Elephant safety claims but urges influencer disclosures changes

In a recent case decision, the National Advertising Division (NAD) of BBB National Programs determined that skin care brand Drunk Elephant provided a reasonable basis for claims about product safety for younger consumers but urged the company to improve disclosure practices among influencers promoting its products. The findings are significant for cosmetics and personal care product manufacturers navigating the increasingly complex landscape of safety claims and influencer marketing.

The NAD’s review, part of its routine monitoring program, focused on an Instagram post in which Drunk Elephant listed 18 skin care products as “safe for kids and tweens to use.” NAD determined that the company “provided a reasonable basis” for this safety claim, concluding that consumers would interpret the products as meeting appropriate safety standards for teens and tweens.

The NAD’s findings support the assertion that these products are designed for safe application on young skin.

In its advertiser statement, Drunk Elephant acknowledged NAD’s role in industry self-regulation and agreed to follow its guidance. "We will comply with NAD’s recommendations,” Drunk Elephant stated, adding that it “appreciates NAD’s important role in advertising industry self-regulation.”

This decision is noteworthy for cosmetics manufacturers, as it underscores NAD’s stance on safety claims in product advertising. With parents becoming more cautious about the skin care products they allow their children to use, the NAD’s validation of Drunk Elephant’s safety claims sets a precedent that can influence similar claims from other companies.

Proper substantiation of product safety claims, especially for products aimed at younger audiences, is increasingly essential for companies to avoid regulatory scrutiny.

Recommended changes to influencer disclosures

Beyond product claims, NAD’s findings raised concerns about how Drunk Elephant’s influencers disclose their relationships with the brand. NAD reviewed two TikTok videos promoting Drunk Elephant’s B-Goldi Bright Drops, created by influencers Alix Earle and Sophia Pauline, and found that neither post provided clear and conspicuous disclosure of their connection to Drunk Elephant.

This finding emphasizes the need for transparent influencer marketing practices in the cosmetics industry.

As reported by NAD, the post by Alix Earle, a paid influencer, included the hashtag “#drunkelephantpartner” only on the fifth line of the caption, making it visible only if viewers clicked the “more” hyperlink. Therefore, NAD recommended that Drunk Elephant ensure “the hashtag appears clearly and conspicuously without having to click on a hyperlink,” and suggested that the company add material connection disclosures directly within the video itself.

In the second TikTok post, NAD confirmed, unpaid influencer Sophia Pauline, who received free products from Drunk Elephant, did not include any disclosure of this arrangement. The organization highlighted that even unpaid influencers must disclose any material connection, including free products, as it can influence consumer perception.

As a result, NAD recommended that Drunk Elephant encourage Ms. Pauline to modify her post to include a clear and prominent disclosure of her relationship with the brand.

In response, Drunk Elephant confirmed it would take measures to inform influencers about required disclosure practices. The company stated it will “take reasonable steps to encourage influencers receiving free products to make clear and conspicuous material connection disclosures” and will provide influencers with guidelines to support compliance.

NAD’s findings illustrate the evolving standards for safety claims and influencer marketing practices, both of which are critical issues for personal care brands. As regulatory scrutiny around influencer transparency intensifies, manufacturers may need to revisit their disclosure policies and influencer partnerships.

This case also serves as a reminder for brands to ensure all claims, especially safety-related claims, are substantiated to maintain credibility with consumers and avoid costly compliance issues.