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.

Marketed as eyeshadow while containing ingredients the FDA bars near eyes, warning on the back; the $1.93M settlement plus $1.2M legal fees cost the brand's trust.

The palette was marketed as eyeshadow while containing ingredients the FDA does not approve for use around the eyes — a regulatory liability a class action was always going to find

The warning labels were hidden on the back of the packaging rather than displayed prominently, making it unlikely that consumers would see the safety guidance before using the product on their eyes

The $1.93 million settlement plus $1.2 million in legal fees represented both a financial cost and a reputational hit for a brand that relied on consumer trust and influencer credibility

The case exposed a gap in Huda Beauty's product compliance and labelling processes — the company had not ensured that its international products met US FDA standards for eye-area cosmetics

The Neon Obsessions palette was sold as eyeshadow and contained ingredients the FDA does not permit near the eyes, with the warning on the back of the box. The $1.93M settlement was the cheaper half.