When you say your product doesn’t include chemical X, it better not include chemical x. Especially if your company’s name is “Honest” and you’re marketing to folks seeking natural products.
“Honest Revamps Cleaning Products,” The Wall Street Journal, October 1, 2016 A1. Laundry detergent marketed as being “SLS-free” found to contain sodium lauryl sulfate. The detergent includes sodium coco sulfate, which apparently is made by mixing together a bunch of other stuff that contains SLS.
What really hurt was that the company was/is in talk about a sale or an IPO. That, and the consumer lawsuits in California. Having a celebrity (Jessica Alba) as your CEO isn’t a 100% deterrent.