Olaplex, a major player in luxury hair care, is under industry-wide scrutiny following a class action settlement over “Made in USA” product labeling. The settlement, granted final approval in July 2025, echoes rising demands for transparency in the beauty sector and extends to anyone in the United States who purchased Olaplex products with alleged U.S.-origin claims between February 7, 2019 and September 6, 2024.
What Happened and Who Qualifies
The lawsuit accused Olaplex of labeling hair care classics like No. 3 Hair Perfector as “Made in USA,” although they often contained foreign-sourced ingredients. This led consumers to believe their purchases were exclusively domestic, which the suit claims violates California’s Made in USA Statute, Consumer Legal Remedies Act, and Unfair Competition Law. While Olaplex never admitted wrongdoing, the company agreed to provide settlement redress for buyers nationwide.
Every customer who bought products during the eligible window—February 7, 2019 to September 6, 2024—can submit a claim for a $5 Olaplex voucher usable for any item on the official website. The voucher, valid for 12 months, may be combined with sales and price reductions but not with promotional codes. Regardless of how many products they purchased, each person receives only one voucher, provided they submit a claim by May 12, 2025.
One legal analysis noted, “Defendants [Olaplex] deliberately and illegally misled consumers for Defendants’ own economic gain,” summarizing the core allegation behind Atamian v. Olaplex, Inc. et al.
Court Process and Payout Timing
Final approval of the settlement came at the July 11, 2025 hearing, with the administration ready to send vouchers to successful claimants within 60 days of court approval. The court-authorized site AtamianMadeInUSASettlement.com lists product eligibility, claim instructions, and deadlines, confirming the legitimacy of the settlement and helping buyers understand their rights.
Investor Settlement and Safety Lawsuits
Concurrently, investors secured a $47.5 million settlement over allegations of misleading IPO disclosures that omitted risks about product safety and legal compliance. The lawsuit Lilien v. Olaplex Holdings, Inc. charged that Olaplex’s public filings after its IPO left shareholders vulnerable to price drops when lawsuits and safety concerns emerged. Payouts to qualifying shareholders (those who purchased common stock traceable to the offering documents through November 12, 2021) will be distributed after a December 1, 2025, hearing, with details available on legal claim portals.
Safety lawsuits have also put further pressure on Olaplex’s reputation, driving awareness of labeling practices and product transparency in the wider industry.
Implications for the Beauty Industry
The Olaplex dual settlements—the $5 vouchers for buyers and investor payouts for misleading risk statements—signal an era of increased regulatory focus and accountability for beauty brands.
Retailers and manufacturers will likely face greater oversight and legal checks when it comes to country-of-origin and safety claims, prompting stricter compliance on labeling and advertising.
Conclusion
Olaplex’s high-profile settlements, combining $5 shopper vouchers and $47.5 million in investor payouts, set new precedents for product labeling, safety transparency, and consumer protection. Beauty brands everywhere are facing the challenge: as the industry demands more honesty and clarity, retailers must ensure their claims stand up to scrutiny, both in court and on the shelf.
