Huda Beauty paid $1.93M for hiding eye-safety warnings inside its Neon Obsessions palette

Huda Beauty was founded in 2013 by Huda Kattan in Dubai, United Arab Emirates, and grew to become one of the most influential beauty brands in the Middle East and globally. The brand's Neon Obsessions eyeshadow palette, launched in 2019, became a popular product among beauty enthusiasts worldwide.

In 2022, a US lawsuit alleged that the Neon Obsessions palette contained ingredients prohibited by the FDA for use around the eyes. The lawsuit claimed that the product's warning labels — which stated 'not intended for the eye area' — were hidden on the back of the packaging rather than clearly displayed on the front, making it unlikely that consumers would see them before purchase.

The case was filed in California federal court as a consumer class action. The plaintiffs argued that Huda Beauty had marketed the palette as an eyeshadow product while concealing the fact that it was not safe for use around the eyes. A California federal judge approved a $1.93 million settlement to resolve the consumer claims, with an additional $1.2 million in legal fees awarded to the plaintiffs.

The settlement was a significant reputational blow for a brand built on influencer trust and social media credibility. The case highlighted the gap between marketing a product as 'eyeshadow' and the regulatory reality of what ingredients were actually permitted for eye-area use. Huda Beauty did not admit wrongdoing as part of the settlement. The company continued to face other controversies, including a 2026 boycott over an Iran-related social media post.