The news: Sephora and Benefit Cosmetics are under investigation in Italy over marketing practices targeting children.

The details: The Italian Competition Authority is exploring whether the two brands failed to clearly disclose in their marketing that their products are not intended for use by children and adolescents—and whether the two encouraged younger consumers to shop using “covert marketing strategies involving young microinfluencers.” Investigators are concerned that such tactics may promote the “compulsive purchase” and “premature use” of products that are meant for older consumers and could be harmful to children’s health.

A spokesperson for LVMH, which owns both brands, said that the company was prepared to cooperate fully with the probes but maintained that both brands are in “strict compliance” with Italy’s laws.

Implications for the beauty industry: Beauty brands must be careful when engaging Gen Alpha.

On the one hand, they are avid consumers of beauty products—and have considerable sway over their households’ beauty purchases.

• Gen Alpha beauty sales are expected to grow faster than the overall beauty market this year, according to Jeff Lindquist, managing director at Boston Consulting Group.
• 43% of US and UK parents say that their children influence their beauty and personal care spending, according to a November Teneo survey.

On the other hand, brands have a responsibility to avoid damaging children’s physical and mental health.

• Many products meant for adults can be unnecessary for children at best and harmful to their sensitive skin at worst.
• Italian authorities also cited the risk of developing “cosmeticorexia,” which they defined as “an obsession with skincare among minors.”

Our takeaway: While selling to Gen Alpha is a lucrative opportunity for beauty companies, they must do so responsibly. Brands need to be upfront about the potential risks products pose to younger consumers’ skin and make sure to comply with any local regulations around marketing to minors.