Product Quality, Safety & Innovation Policy

e.l.f. Beauty (“e.l.f.” or the “Company”) is committed to delivering premium-quality beauty products, formulated with ingredients that have the health and safety of our consumers in mind. We believe our ability to deliver 100% cruelty-free, premium-quality products at accessible prices with broad appeal differentiates us in the beauty industry. As we continue to innovate and develop new products, as well as reformulate existing products, quality and safety remain our highest priorities.

our commitment to quality and safety starts in the development stage.

Our commitment to quality and safety starts in the product development stage. As of March 31, 2021, we had 49 e.l.f. Beauty professionals involved in innovation, education, research and development (R&D) and quality across our two innovation hubs in Oakland, CA and Shanghai, China. These professionals work closely with our network of third-party suppliers on new product innovation and quality. The raw materials used in our products are broadly available and have regular quality testing for ingredient integrity.

we have a powerhouse innovation engine, with a steady flow of new products.

We believe innovation is key to our success and that we are a leader in the industry in speed and new first to mass product introductions. We have built an innovation capability that can progress a new, high-quality product from concept to online launch in as few as 13 weeks and 20 weeks on average. We leverage multiple sources of inspiration to develop our new product ideas, including global trend assessments, supplier and industry research, strategic customer input and consumer feedback and insights.

Our innovation strategy is underpinned by four key pillars:

  • Holy Grails:“Holy grails” are beauty products that deliver premium quality at unbelievable prices with broad appeal. As consumers are increasingly savvy and knowledgeable about trends in the prestige market, they look for ways to get the best of beauty at an accessible price. Examples of our “holy grails” include the e.l.f. Cosmetics Poreless Putty Primer at $9 versus a comparable prestige primer at $52, the e.l.f. Cosmetics 16HR Camo Concealer at $6 versus a comparable prestige concealer at $27, and the W3LL PEOPLE Expressionist Pro Mascara at $19 versus a comparable clean prestige mascara at $28.
  • Core Improvement: We consistently evaluate our core offerings to develop new products or improve quality based on category trends, consumer feedback, and other market intelligence. We launch trend-inspired, core expansion products that augment our assortment and deliver extraordinary value across price points. We also evaluate quality improvement opportunities with our product assortment, such as reformulating existing products with cleaner ingredients.
  • Adjacencies:We believe that we can reapply our model to launch products into adjacent product categories outside of color cosmetics. For example, Keys Soulcare’s initial product collection introduced in early calendar year 2021 included nine dermatologist-developed clean offerings in the skin care category.
  • Collaborations & Collections: We utilize collaborations and collections to build brand awareness and showcase our brands’ abilities to connect with, surprise and delight consumers while creating buzz-generating moments. For example, in the year ended March 31, 2021, e.l.f. Cosmetics launched a collaboration with Chipotle on a limited-edition makeup collection. We also utilize exclusive collections with our national retailers, such as e.l.f. Cosmetics’ Mint Melt collection which was available exclusively at Walmart in the United States, at Superdrug in the United Kingdom, and at DM stores in Germany.

our products are 100% cruelty free.

We are committed to delivering premium quality products that are 100% cruelty free.

e.l.f. Beauty does not conduct or tolerate any tests on animals, nor does the Company use any ingredients that are tested on animals in any of its products. Each of our brands is certified by People for the Ethical Treatment of Animals (PETA) as “Global Animal Test-Free”, a label given to companies and brands who have verified that their own facilities and their suppliers do not conduct, commission, pay for, or allow any tests on animals for their ingredients, formulations, or finished products.

Read more about our Animal Testing Policy here.

our products are formulated with clean ingredients.

At e.l.f. Beauty, our products are formulated with ingredients that have the health and safety of our consumers in mind. Our products are safe for intended use and do not contain harmful chemicals that pose a risk to the user.

Our products are formulated to meet FDA and European Union Cosmetic Regulation restrictions for over 1,600 ingredients. We are continuously reviewing our manufacturing processes and partners, as well as broader consumer sentiment, to expand the list of ingredients we choose not to formulate with. On top of the over 1,600 ingredients restricted by the FDA and European Union Cosmetic Regulation, we have identified an additional 49 ingredients which we no longer use.

Among others, our brands are free of:

  • Parabens
  • Phthalates
  • Formaldehyde
  • Nonylphenol ethoxylates
  • Triclosan
  • Triclocarban
  • Toluene
  • Coal tar
  • Lead
  • Mercury
  • Acrylamide
  • Hydroquinone

Additionally, e.l.f. Beauty does not use any Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) substances of very high concern (SVHC) or California Department of Toxic Substances Control (DTSC) Candidate Chemicals in any of our products.

Further, we do not use palm oil in our products. We require that any palm derivatives in new product formulations be certified by the RSPO (Roundtable on Sustainable Palm Oil), a global standard for sustainable palm oil.

EWG VERIFIED™ products

W3LL PEOPLE is a clean beauty pioneer, raising the standard for high-performance, plant-powered, cruelty-free cosmetics since 2008. W3LL PEOPLE’s product-line includes over 35 EWG VERIFIED™ products, a leading standard of “clean and healthy” in the beauty space. As recognized by the Environmental Working Group, an EWG VERIFIED™ product indicates that the product:

  • Avoids EWG’s ingredients of concern: Products cannot contain any ingredients on EWG’s “Unacceptable” list, meaning ingredients with health, ecotoxicity and/or contamination concerns.
  • Provides full transparency: Must meet EWG’s standards for ingredient disclosure on the label, provide full transparency to EWG, including fragrance ingredients.
  • Uses good manufacturing practices: Product manufacturers must develop and follow current good manufacturing practices to further ensure the safety of their products.

we are transparent with our consumers and value their feedback.

Our consumers have been our best advocates, growing our brands through strong word of mouth. Many of our consumers are active in social media, write reviews of our products online and generate content on Instagram, Facebook, Twitter, TikTok, YouTube and other social media outlets. We believe our active dialogue with our consumers provides us with a highly differentiated perspective on innovation and informs the continuous launch, validation, and refinement of our products.

We seek to be transparent with our consumers about the ingredients we use. We publish the full ingredient list for all of our products on our brand e-commerce websites (https://www.elfcosmetics.com/, https://www.w3llpeople.com/ and https://www.keyssoulcare.com/), under the “Ingredients” tab on each product’s page. Consumers can also provide feedback and leave questions about each product on the “Review” and “Q&A” tabs respectively. This interaction with our consumers provides important inputs to our quality and safety procedures.

Keys Soulcare Comforting Balm Product Ingredients Page

we ensure compliance with our quality and safety commitments.

We promptly review and addresses any alleged non-conformance incident that is brought to our attention. Based on the specific situation, we will provide the information or explanation to resolve the complaint.

e.l.f. Beauty has not had a product recall. If a recall should happen, the Company would follow the data reporting requirements under the applicable regulatory recall procedures.

e.l.f. Beauty has not had any material legal and/or regulatory fines, settlements or enforcement actions associated with false, deceptive, or unfair marketing, labeling and advertising. If such an event were to occur, we would disclose relevant information if it was deemed material.

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