AT COSMOPROF North America
Beauty Week in Las Vegas,
Moroccanoil (
announced a groundbreaking, multimillion
dollar, high-tech system
that will help deter diversion of its
exclusive salon and spa products
in ways that were previously
considered impossible.

Tackling Diversion Head On“Moroccanoil launched
a new hair product category
that took the beauty world
by storm,” says Zohar Paz,
CEO of Moroccanoil North
America. “Now, to protect
our products from diversion,
we are launching another
innovation—the most comprehensive,
sophisticated and
far-reaching anti-diversion
and anti-counterfeiting system
in the history of our industry.
We are 100-percent committed
to prevent the sale of our
products through illicit or
unauthorized channels.”

Key elements of the Moroccanoil
campaign include:

Proprietary Instant Tracking

The highlight of this program is the revolutionary,
proprietary software and tracking
technology that allows
Moroccanoil to precisely
determine which party purchased
the product and quickly identify
and address the source of diversion.
The program places more
than 100 invisible matrix encryption
codes throughout
each label, (both front and
back), giving each bottle
its own individual tracking
‘DNA’ that cannot be
manipulated by diverters
in an attempt to evade detection.
Products can be
tracked even if only 1mm
of a label is present.

According to Paz,
“The codes can only
be read by a high-tech
device that we developed
expressly for this
purpose and have now
shared throughout our
chain of distribution.”

In-House Legal Force,
Detectives and Business

Underscoring the company’s commitment
to zero-diversion, Moroccanoil has formed
new in-house departments staffed by highly
trained and experienced specialists in law
and business analytics and research, who
are tasked with the responsibility of taking
action against diverters. A full-time
dedicated team of detectives reinforces
the group. In addition, the company has
retained the services of several major
law firms with global resources, specializing
in intellectual property, diversion,
and counterfeiting of products. The legal
team already has launched several lawsuits
against major retailers known to be
involved in diversion and in some cases,
product counterfeiting.

Anti-Diversion Contracts
Signed by Distributors and

Ironclad, legally-binding contracts have already
been signed by all those purchasing
and selling Moroccanoil products, including
tens of thousands of salons across the
U.S. and Canada. The contracts will help
ensure that Moroccanoil products are not
diverted to unauthorized channels without
the offending party being held legally accountable.

Regional Inspectors

Using proprietary, code-reading devices, a
team of Moroccanoil inspectors are now
monitoring retail stores in territories throughout
North America. If diverted, the products
will be quickly discovered, every bottle
scanned, and the resulting code information
immediately reported to corporate so
they can be tracked and acted upon.

“We Tip” Program/Product

To empower stylists and consumers,
Moroccanoil will soon have a comprehensive
“We Tip” program in place for
whistleblowers that will enable anyone to
immediately report diversion via a dedicated
hotline, special website, e-mail or text.
According to Paz, “Diverters are negatively
impacting the integrity of the professional
hair industry, salon profitability, and undermining
the promise that we have made to
our loyal network of distributors and salon
professionals: No Diversion.”