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  • When a Founder’s Controversy Hurts the Brand: KVD Beauty

    By: Gianna Blawas – April 4th, 2026

    The beauty industry is all about trust. People don’t just buy makeup, they buy into a brand’s image, values, and identity. That’s why when a brand faces an ethical controversy, it can seriously impact how customers feel and whether they continue supporting it. A great example of this is Kat Von D Beauty, now known as KVD Beauty.

    What Happened?

    Kat Von D Beauty was originally known for being vegan, cruelty-free, and bold in its branding. It had a loyal customer base that really connected with those values. But things took a turn when founder Kat Von D shared controversial anti-vaccination views online in 2018.

    This immediately caused backlash. People weren’t just upset, they were disappointed. On top of that, past allegations connected to offensive imagery resurfaced, which made things even worse. Even though these issues were tied to the founder personally, consumers started associating those beliefs with the brand itself.

    How It Affected Consumers

    This situation had a huge impact on how people saw the brand. A lot of customers who once supported the company, especially those who care about ethics and social responsibility, started pulling away.

    Social media made everything spread even faster. Negative comments, boycotts, and criticism quickly went viral. Instead of promoting products, people were talking about the controversy. That shift in conversation really hurt engagement and brand loyalty.

    The Outcome

    The damage was serious enough that in 2020, Kat Von D stepped away from the company. The brand was rebranded as KVD Beauty and is now owned by Kendo Holdings.

    The goal of the rebrand was to separate the company from the controversy and rebuild trust. While the brand still exists today, it had to work hard to repair its image and reconnect with consumers.

    What Could They Have Done Better?

    Looking back, there are a few things the brand could have done differently:

    • Respond faster: A quick, clear statement could have helped control the narrative early
    • Separate the brand from the founder: The company relied too heavily on one person’s identity
    • Be more transparent: Addressing concerns openly builds trust, even during controversy

    If the brand had taken these steps earlier, it might have reduced the backlash and kept more loyal customers.

    Final Thoughts

    The situation with KVD Beauty shows how quickly things can change in the beauty industry. Even if products are high quality, ethical concerns can completely shift consumer perception.

    At the end of the day, people want to support brands they feel good about. If trust is broken, it’s not always easy to win it back.

    References

    • BBC News. (2018). Kat Von D sparks backlash over anti-vaccination views.
    • Business of Fashion. (2020). KVD Beauty rebrands after Kat Von D exits.
    • Forbes. (2020). Celebrity brands and reputational risk.

  • Lessons from the AT&T Mobile Cramming Case

    By: Gianna Blawas – August 8, 2025

    What law was violated in the AT&T case?
    In the FTC’s AT&T “mobile cramming” case, the company was found to have billed customers for third-party premium text services—such as ringtones, wallpaper subscriptions, and horoscope tips—without their informed consent. This conduct violated Section 5 of the FTC Act (15 U.S.C. §45), which prohibits unfair or deceptive acts or practices. The case resulted in more than $88 million in refunds to over 2.7 million current and former AT&T customers, as part of a larger $105 million settlement with the FTC, the Federal Communications Commission (FCC), and state attorneys general (Federal Trade Commission, 2016).

    Negative consequences to consumers
    Mobile cramming caused direct financial harm by adding unauthorized charges—often $9.99 per month—to customers’ bills. It also created indirect harm, including the time and frustration required to dispute charges, potential service disruptions when customers refused to pay, and loss of trust in mobile billing systems. In many cases, customers were unaware of the charges for months, leading to cumulative costs.

    Other real-world cases and penalties
    AT&T’s settlement was part of a broader crackdown on mobile cramming. T-Mobile agreed to pay at least $90 million in refunds for similar unauthorized charges (FTC, 2014). Verizon and Sprint collectively paid $158 million to resolve comparable allegations (FTC, 2015). Outside of cramming, companies engaging in unauthorized texting or calling can face lawsuits under the Telephone Consumer Protection Act (TCPA), which allows damages of $500 per violation—or up to $1,500 per willful violation—creating massive potential liabilities for large-scale campaigns without proper consent.

    Possible penalties for violations
    Penalties for mobile marketing violations vary depending on the law breached but can include:

    • Full consumer refunds for affected customers.
    • Civil fines and statutory damages (such as under the TCPA).
    • Injunctive relief requiring companies to change billing or marketing practices.
    • Ongoing compliance monitoring by regulators.

    In AT&T’s case, the settlement required not only monetary refunds but also reforms to ensure customers receive clear, conspicuous disclosures before being billed for third-party services, and that charges are only applied with express informed consent.

    Ethical actions for mobile marketing compliance
    To remain ethical and compliant, mobile marketers should:

    • Obtain express, informed consent before billing or sending promotional messages.
    • Provide clear and conspicuous disclosures about pricing, terms, and message frequency.
    • Make opt-outs simple and immediate (e.g., “Text STOP to cancel”) and honor them promptly.
    • Vet and monitor third-party partners to ensure they comply with legal standards.
    • Avoid deceptive or misleading practices and substantiate all marketing claims.

    Conclusion
    The AT&T case serves as a cautionary tale for any business engaged in mobile marketing or billing. Violating consumer trust through unauthorized charges not only leads to substantial legal penalties but also causes long-term reputational damage. By prioritizing transparency, consent, and responsible third-party management, companies can avoid the pitfalls of mobile cramming and maintain the trust and loyalty of their customers.

    References:

    FTC providing over $88 million in refunds to AT&T customers who were subjected to mobile cramming. (2021, September 18). Federal Trade Commission. https://www.ftc.gov/news-events/news/press-releases/2016/12/ftc-providing-over-88-million-refunds-att-customers-who-were-subjected-mobile-cramming