Federal Court finding against NSW man Ross Macdougald’s companies Plants Extracts and Biologi shakes up cosmetics industry

Court findings against a NSW businessman who was found to have deceptively spruiked cosmetics and claimed they contained a fake anti-ageing compound are rippling through the industry. Here’s what happened.

Ross Macdougald. Picture: Tessa Flemming.

Federal Court findings against a North Coast businessman who was found to have deceptively spruiked cosmetics and claimed they contained a fake anti-ageing compound are rippling through the industry.

Byron’s Ross Macdougald was taken to task over companies Plant Extracts and Biologi after his former partner and business associate Lisa Carroll, filed a lawsuit three years ago.

She runs Native extracts, a competing business based in nearby Alstonville.

Lisa Carroll runs a competing cosmetics business.

Justice Kylie Downes found Macdougald used misleading tactics to promote products. She ordered him to publish a raft of corrective notices on websites and social media about eight misleading claims.

She found “byangelicin” – claimed to be in products – did not exist.

Retailers like The Skin Bar are now pulling products and influencers like Ruby Tuesday Matthews, who provide promotion either officially or unofficially, are distancing themselves.

Australian model Samantha Harris was “the face of” Biologi in 2020.

Some stockists have remained quiet, like The Iconic, in the wake of the findings and chosen not to respond to questions.

Skincare Business Foundations founder Jennifer Rudd, member of the Australian Society of Cosmetic Chemists, said the decision is one of the largest involving the national industry.

“It’s not an isolated case, but indicative of a widespread issue within the industry where false claims and misinformation run rife — often at the expense of the consumer,” she states.

Ross Macdougald with Biologi products. Picture: Tessa Flemming.

Ms Carroll told News Corp she filed the lawsuit to protect the integrity of her business, but found it widened in scope.

“Very quickly it became more about exposing things … that really hurt this industry,” she said.

“The majority of this industry works very hard to comply and brands work very hard to be transparent and tell consumers the truth.

“But it’s not a level playing field when brands are not.

“And it is way too easy to do the wrong thing when the majority of the industry is doing the right thing … which impacts on the trust for the industry.”

Ms Carroll said the use of the Organic Food Chain logo to falsely advertise as an organic certified brand was “the ultimate greenwashing”.

The court determined the logo was used falsely and relevant products were not organic.

Model Samantha Harris was promoted as ‘the face of Biologi’ in 2020.

“What we (customers) really want is the truth,” she said.

“And how can you claim therapeutic benefits, such as reduced signs of ageing, when you’re relying on a compound that doesn’t even exist?”

Biologi was found to have used modified certificates belonging to competitor Native Extracts to claim Southern Cross University tested products and deemed them organic.

Following the November 1 findings, Biologi launched a new “Activate Body Scrub” which it said on Instagram would “revolutionise the body care industry”.

It comes after Mr Macdougald previously spoke about fighting against misinformation in the cosmetics industry.

Lisa Carroll says she hopes the court’s findings will make the cosmetics industry more transparent.

In a Studio 10 interview from 2019 posted to Biologi’s YouTube account, Mr Macdougald said he was a chemist passionate about caring for skin and he urged viewers to “research everything”.

“We all look at labels when we’re eating, so why wouldn’t we do it for our skincare?,” he asked.

“I’ve worked in the industry for thirty years and I’ve seen mistakes after mistakes in regards to what we put on our skin.

“I’ve made it a point now to try and reverse that trend … most skincare brands, 98 per cent, are made up of things that are not good for the skin.”

Ross Macdougald. A Biologi spokeswoman says the company is looking into issues with third-party product testing undertaken in “good faith”.

A Biologi spokeswoman has said the company was “content that information already released provides as much background as we are currently able”.

She said matters were “still before the courts” and there remained “issues of liability that arise due to reliance placed on third-party testing” undertaken “in good faith”.

But Dundas Lawyers represented Ms Carroll and principal Malcolm Burrows said legal action has concluded and orders have already been made.

“The opportunity for the applicants or the respondents to adduce further evidence has passed,” he said.

“Justice Downs has made orders in relation to the matters that have been admitted by the Macdougald Parties in the interests of consumer protection.”

Mr Burrows did note a final judgement on loss and damages was still to come.

Originally published as Federal Court finding against NSW man Ross Macdougald’s companies Plants Extracts and Biologi shakes up cosmetics industry