(June 24, 2009) A L'Oreal, subsidiary, Labs Garnier, was found guilty of racial discrimination in it's hiring practices by the highest court in France. The court affirmed a lower court ruling that Lab Garnier and it's personnel agency practiced racial discrimination in 2000 when it recruited sales persons fora new product line, "Garnier Style". L'Oreal is the worlds largest cosmetics company with over $27 billion in sales revenue. Garnier was fined 30,000 Euros. In addition, the Addeco personnel agency and it's subsidiary Districom (now Ajillion), were are fined 30,000 Euros for racial discrimination as well. The case was brought by SOS Rascism, a French anti-discrimination group.

According to news reports, in the year 2000, the recruiting agency was told to screen out non-white candidates during the recruitment of hostesses for a new Garnier product. "The court was told that only 4.65% of Garnier recruits were Black, Arab or Asian." said the Times of London Online Edition. In addition, a Districom fax detailing the requirements was presented as evidence. Verbal instructions to screen out minorities was also exposed.

L'Oreal employs or has employed several celebrities, including: Beyonce Knowles, Kerry Washington and Eva Longoria, to market it's products. L'Oreal denied claims in 2008 that it had lighten Beyonce's skin for a marketing campaign.

L'Oreal has many well known consumer and professional brands around the world some of which are: L'Oreal Paris, Garnier, Maybelline, Softsheen/Carson, L'Oreal Professional, Matrix, Redken, Kerastese, Mizani, Lancome, Biotherm, Logics, Dermablend, Helena Rubinstein, Kiehl's and the fragrances of Ralph Lauren, Viktor & Rolf, Diesel and Giorgio Armani. L'Oreal also owns the body shop cosmetic retailer which it acquired in 2005.

Sources:

http://business.timesonline.co.uk/tol/business/law/article6570856.ece

http://www.loreal.com/_en/_ww/index.aspx

http://www.sos-racisme.org/

http://www.wikinvest.com/stock/L'oreal_(LRLCY)

http://www.guardian.co.uk/media/2008/aug/08/advertising.usa