Core Viewpoint - L'Oréal is facing significant challenges due to contamination issues with its products, specifically related to the presence of benzene, a recognized carcinogen, leading to product recalls and legal actions [2][3][5]. Group 1: Product Recall and Contamination - L'Oréal has recalled all batches of its Effaclar Duo acne treatment product in the U.S. after detecting trace amounts of benzene [2][3]. - The recall is limited to the U.S. and Canadian markets, with no impact on the Chinese market [3]. - Benzoyl peroxide, a key ingredient in the product, is known to be unstable and can lead to the formation of benzene [3]. Group 2: Legal Issues and Brand Impact - In January, L'Oréal faced multiple class-action lawsuits related to benzene contamination in its CeraVe brand products, with claims that benzene levels exceeded federal safety standards [5]. - The company is currently dealing with six class-action lawsuits targeting the CeraVe brand and L'Oréal itself [5]. - The beauty industry is facing scrutiny, with several L'Oréal brands appearing on a blacklist for consumer complaints [5]. Group 3: Financial Performance - L'Oréal reported a total sales revenue of €43.487 billion (approximately ¥329.429 billion) for the year 2024, reflecting a year-on-year growth of 5.6% [6]. - The operating profit reached €8.688 billion (approximately ¥65.821 billion), marking a historical high for the company [6].