Monat Explained

Monat Global Corp.
Type:Privately held company
Industry:Multi-level marketing
Predecessors:-->
Successors:-->
Founders:-->
Hq Location City:Doral, Florida
Hq Location Country:United States
Areas Served:-->
Key People:Luis Urdaneta (Co-founder & chairperson)
Rayner Urdaneta (Co-founder & CEO)
Products:Hair care, skin care, and wellness
Owners:-->

Monat Global Corp., or simply Monat, is a privately-held American multi-level marketing company headquartered in Doral, Florida, which sells haircare, skincare, and wellness products. It is a subsidiary of the Alcora Corporation, a private-labeling company formed in 2001. Monat operates in the U.S.,[1] Canada, the U.K., Ireland,[2] Poland, Spain, Australia, New Zealand, Lithuania, France,[3] Mexico, and Colombia.

History

Luis Urdaneta (chairman) and Rayner Urdaneta (CEO) co-founded the company in 2014 (originally Alcora Group).[4] [5] [6] They began with haircare products and expanded into skincare in 2019[7] [8] and wellness in 2020.[7] [9] [10] The wellness line was developed through a partnership with Dr. Brent Agin and includes supplements, mixes, and powders which the company claims supports energy, digestion, beauty, and sleep.[11] [12] [13] [14] [15]

Position on animal testing

In 2018, Monat was recognized by Cruelty Free International as a Leaping Bunny Approved Brands, certifying that no animals were harmed or affected in the creation of their products at the ingredient level.[16] [17] [18] All the company's products are vegan.[19] [20] All of its skincare products meet the ingredient standards of the EU.[21]

Philanthropy

Monat donates to nonprofit organizations around the world through its charitable platform Monat Gratitude, established in 2014 when the company was founded.[22] [23] All net profits from its limited edition Helping Hand Gift Sets were donated to nonprofits focused on assisting at-risk youth.[24] [25] This included Big Brothers Big Sisters of America, Horizons for Youth, Chance UK, ISPCC]]).[26] During the COVID-19 pandemic, Monat Gratitude donated disaster relief kits and hand sanitizer to hospitals and other organizations including the Salvation Army Winnipeg, Kelowna Gospel Mission, and the Toronto Police.[27]

In November 2022, the Monat Gratitude donated a fraction of their sales to support communities in Puerto Rico, Florida and Canada who were impacted by Hurricanes Fiona and Ian.[28]

Lawsuits and legal issues

Monat has been the subject of ten lawsuits and hundreds of complaints to the U.S. Food and Drug Administration and Better Business Bureau.[29] [30] [31] [32] [33] [34] Monat retaliated against some of the complainants by filing unsuccessful defamation lawsuits.

In 2018, and again in 2020, Monat’s products were tested at the independent clinical testing labs of Kosmoscience Ciencia & Tecnologia Cosmetica Ltda, an ISO 17025-certified laboratory in Brazil. Kosmoscience has also tested products for L’Oreal, Unilever, Proctor & Gamble, and Johnson & Johnson. The tests reported that Monat’s products did not promote hair breakage or hair damage.[35] [36]

In March 2019, a federal report filed by the FDA after inspecting Monat's Florida manufacturing facility found that multiple products were "prepared, packed, or held under unsanitary conditions whereby (they) may have become contaminated with filth". An FDA legal expert said that the report "falls on the mild side of the enforcement spectrum and notes fairly common issues."[37]

In October 2019, a ruling by the U.S. district court in Miami, Florida allowed a consumer class action lawsuit against Monat to proceed,[38] although the judge noted that plaintiffs may have difficulty proving that the company’s products are to blame for their injuries.[39] The judge in the case said that the plaintiffs sufficiently alleged that Monat's products were defectively designed using contaminated chemicals and that the company had failed to inspect their ingredients for contamination. In a separate court case, a judge ruled that the plaintiffs had no constitutional standing to seek injunctive relief from Monat.[40]

In 2020, the Florida Attorney General terminated its investigation into Monat after the company signed an Assurance of Voluntary Compliance.[41]

In 2024, former president and director Stuart MacMillan sued the company for breach of contract and fraud. He claimed that the company uses low quality ingredients and that the owners run a no-show job scheme to funnel money to their family members.[42]

References

Notes and References

  1. Web site: Magazine . FABUK . 2018-04-17 . Monat Announces UK Launch . 2022-06-30 . Fabuk Magazine . en-GB.
  2. Web site: Monat Global . 2022-06-30 . HAPPI.
  3. Web site: 2023-04-05 . MONAT Global Expands European Operations in France . 2023-05-08 . www.businesswire.com . en.
  4. Web site: Monat Global Company Information, Products, Sales & More : The Top 50 Household and Personal Products Companies in 2019 - HAPPI . 2022-04-25 . www.happi.com.
  5. Web site: Monat Launches Collection of Luxury Skin Care Products . 2022-04-25 . Beauty Packaging.
  6. Web site: MONAT . 2024-07-09 . Alcora Corporation . en-US.
  7. Web site: Monat Enters Wellness Space . 2022-04-25 . HAPPI.
  8. Web site: 2020-09-14 . MONAT Enters the Wellness Space With 5 New Offerings . 2022-04-25 . NewBeauty . en-US.
  9. News: 2020-09-14 . MONAT Enters the Wellness Space With 5 New Offerings . en-US . NewBeauty . 2022-04-25.
  10. Web site: 2020-09-15 . Monat Wellness Enters the Ingestibles Game . 2022-04-25 . Global Cosmetic Industry . en-us.
  11. Web site: Monat Enters Wellness Space . 2022-05-04 . HAPPI.
  12. Web site: 2020-09-14 . MONAT Enters the Wellness Space With 5 New Offerings . 2022-05-04 . NewBeauty . en-US.
  13. Web site: 2020-09-15 . Monat Wellness Enters the Ingestibles Game . 2022-05-04 . Global Cosmetic Industry . en-us.
  14. Web site: Monat breaks into the wellness category with new range . 2022-05-04 . www.cosmeticsbusiness.com . en.
  15. Web site: Is Plant-Based Collagen As Good As The Real Thing? . 2022-05-04 . Byrdie . en.
  16. Web site: 2019-09-20 . Bask-It-Style Lounge: TIFF 2019 Edition . 2022-07-29 . Beyond Fashion Magazine . en-US.
  17. Web site: Leaping Bunny Program .
  18. Web site: 2019-10-08 . This new skincare line sold £1.6m worth of glow-giving products in under 5 hours, so what's all the hype about? . 2022-07-29 . Glamour UK . en-GB.
  19. Web site: Monat . 2022-08-04 . Beauty-not-cruelty . en-US.
  20. Web site: 2019-10-08 . This new skincare line sold £1.6m worth of glow-giving products in under 5 hours, so what's all the hype about? . 2022-08-04 . Glamour UK . en-GB.
  21. Web site: Burhop Fallon . Brittany . 2019-09-17 . MONAT Just Launched a Skin-Care Line and It's Everything You Hoped For . 2022-09-02 . NewBeauty . en-US.
  22. Web site: Monat Global . 2022-09-08 . HAPPI.
  23. Web site: Content . StyleDemocracy Branded . 2020-04-16 . Beauty Brand MONAT Is Donating Thousands Of Hand Sanitizers & Disaster Relief Kits To Frontline Workers . 2022-09-08 . StyleDemocracy . en-US.
  24. Web site: Monat Global . 2022-09-22 . HAPPI.
  25. Web site: MONAT Raises $248,000 to Support At-Risk Youth - Direct Selling News . 2022-09-22 . www.directsellingnews.com . 13 May 2020 . en-US.
  26. Web site: MONAT Raises $248,000 to Support At-Risk Youth - Direct Selling News . 2022-09-22 . www.directsellingnews.com . 13 May 2020 . en-US.
  27. Web site: Content . StyleDemocracy Branded . 2020-04-16 . Beauty Brand MONAT Is Donating Thousands Of Hand Sanitizers & Disaster Relief Kits To Frontline Workers . 2022-10-06 . StyleDemocracy . en-US.
  28. Web site: MONAT Donates $288,000 to Support Hurricane Relief and Underserved Youth. 2022-11-23 . 2023-02-10.
  29. Web site: Monat files another defamation lawsuit but FDA complaints flood in . 10 March 2018 . Cosmetics Business.
  30. News: Spears . Darcy . Complaints, class action lawsuits pile up against hair care company Monat . July 13, 2020 . . Mar 14, 2018.
  31. News: Monat Global loses bid to dismiss lawsuit over trendy haircare products. 24 October 2019 . Reuters.
  32. News: Spears . Darcy . FDA inspection finds 'insanitary conditions' at Monat manufacturing facility . July 13, 2020 . . Aug 20, 2018.
  33. News: Miller . Korin . People Say This Hair-Care Product Causes Balding And Scalp Sores . July 13, 2020 . . March 14, 2018.
  34. News: Monat global class actions piling up . July 13, 2020 . . May 15, 2018.
  35. Web site: 2018-08-21 . FDA inspects Monat manufacturing facility . 2022-10-01 . KTNV 13 Action News Las Vegas . en.
  36. Web site: WABC . 2018-06-12 . Exclusive: Execs behind company accused of causing hair loss speak out . 2022-05-27 . ABC7 New York . en.
  37. Web site: 2018-08-21 . FDA inspects Monat manufacturing facility . 2022-05-17 . KTNV . en.
  38. Web site: Hoffpauir et al v. Monat Global Corp., Case No. 18-cv-21606, S. D. FL. . . July 13, 2020.
  39. Web site: MONAT can't shed class action linking its products to hair loss . 28 October 2019 .
  40. Web site: Two Days in October Result in Two Different Rulings by District Court Judges in the Southern District of Florida Regarding Standing to Seek Injunctive Relief on Behalf of a Class . 2022-07-14 . The National Law Review . en.
  41. Web site: Aug 14, 2020 . Assurance of Voluntary Compliance . MyFloridaLegal.com.
  42. News: Spears . Darcy . Monat's biggest cheerleader becomes company's harshest critic . KTNV-TV . May 24, 2024.

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