Hair Care Company Faces Lawsuit, Investigation – and Possibly Worse (Watch)

Hundreds of people who purchased hair care products from Wen by Chaz Dean got a little more (or less) than they bargained for.

According to a class action lawsuit against the company and direct marketing company Guthy-Renker, 200 women from 40 different states have reported hair loss, scalp irritation and rashes after using the products. And a federal judge has just approved a preliminary settlement of over $26 million.

Though that settlement still needs to get final approval from another federal judge, that could mean that anyone who experienced hair loss and scalp irritation could get up to $20,000, while anyone who even bought the product could get $25.

That's a lot of cash for a company to shell out, but it could be the least of Wen's worries. The Food and Drug Administration is now investigating the reports of adverse reactions to Wen's cleansing conditioner products. And even if the company doesn't face any official backlash, it could certainly see its reputation take a hit.

The Importance of Product Testing

Situations like this are difficult for companies to come back from, which is just emphasizes the importance of product testing and research. If you can avoid major issues like this before they ever come up publicly, you won't have to work so hard to repair your business's reputation later.

Chaz Dean Photo via Shutterstock

This article, "Hair Care Company Faces Lawsuit, Investigation – and Possibly Worse (Watch)" was first published on Small Business Trends