The story of skin-care and beauty entrepreneur, Holly Thaggard, and how she jumped into the “sun care” category to build the sustainable and socially responsible brand, Supergoop!, has taken the beauty industry by storm. After battling skin cancer at a young age due to nonchalantly applying sun protection, Thaggard realized that women were unaware of the risk and how imperative it was to apply sunscreen daily, even indoors. Thaggard, who previously practiced law, understood that having a lawyer breach of contract is a headache (and may result in liability) and decided to jump in, offering a solution, the SPF 32 that would revolutionize the way we protect our skin today. According to The Business of Fashion’s 2017 ‘NPD Beauty Inc.: Breakthrough & Signature Brands’ via Mintel report: The prestige sun care category market value grew by 4% to US$182m in February 2016, surpassing the US$169m achieved in February 2015. Thaggard uses her legal background to provide a framework for building honesty and transparency within her business, as well as an internal code of ethics, in the midst of a rapidly growing industry. The legal landscape can be daunting for entrepreneurs, as the beauty industry is governed by federal statutes and regulations (e.g., labeling requirements, recalls, safety reports, good manufacturing practices, and consumer product safety) at the local level and has the potential to impact multiple stakeholders, from investors, partners, and vendors, to consumers. The idea of a lawyer “breach of contract” sounds daunting, but it does not have to be.
If you are a cosmetic or skin-care brand who is frequently engaging with a team of lawyers, no matter the location, or have any services spanning across the world, it is always best to execute a written agreement that describes the terms of your relationship. A breach of contract occurs when a party: Although the damages available in a breach of contract action do not include any damages that were not contemplated or foreseeable at the outset of the contract, breaches of contract may still lead to significant liability, which can be difficult to assess and impact your overall product launch and marketing strategy. The success of any product launch is based on an understanding of the current and future marketplace, and if a product or service becomes unavailable to the consumer, this can impact the way that a brand is marketed and disrupt any prospective revenue goals. There may be multiple scenarios where beauty brands could be purchasing or providing services under a written contract, including the following: In order to align your business to avoid a lawyer breach of contract, beauty brands must drive value by crafting contracts with a business model in mind (e.g., subscription, retail, wholesale, timely deliveries, health concerns). Here are some common strategies you should consider when crafting any legal agreement: If a breach of contract occurs, these are some common steps you can take to resolve the breach: Legal advisors can play an integral role in your beauty business by executing written agreements for various levels of your business and preemptively avoiding a lawyer breach of contract.
Although there are a number of recent case studies of beauty brands who have dealt with breaches, and the facts are less than pleasant, ultimately the brand was able to protect itself by having reasonable safeguards in place and protecting its intellectual property rights, such as: The long-term benefits of understanding legal contracts in beauty cannot be understated. Beauty brands benefit from both time and cost savings by being able to adapt to new opportunities. For example, if a skincare or cosmetic company is performing manufacturing due diligence to seek its own deal or potential joint venture with an established investor, they can be successful in reaching a settlement in order to maintain its deal. Any amount of investment in knowing the law pays off in the long term. It can be beneficial for beauty entrepreneurs to have a thorough understanding of the law and the role that legal can play as a part of their business, e.g., identify potential risks in advance and help achieve future goals. A synergistic approach ensures that the beauty brands’ goals are aligned with their business ideals-whether being sold on QVC or launching a subscription-based model.
For more information on legal aspects in business, you can visit USA.gov.
