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LVMH-owned Sephora has agreed to pay $775,000 to California for the alleged mishandling of damaged, returned or expired cosmetics in 21 Bay Area Sephora stores. Many cosmetics are classified as hazardous waste in California, including anything that is flammable or may contaminate groundwater. Similar actions were taken against Ulta Beauty and Sally Beauty in California in 2021, which resulted in payouts of $752,000 and $2 million, respectively. Glossy checked in with experts to unpack what happened and the lessons to be gleaned by the industry.