NH court: L'Oreal within law in sending salon spy

CONCORD, N.H. - The New Hampshire Supreme Court says beauty industry giant L'Oreal did not violate the law when it caught a Rochester, N.H., salon diverting its salon-only hair care products.

L'Oreal had agreements with Hair Excitement specifying that its Matrix and Redken products be sold only to salon customers. But after getting tips that the salon was violating that agreement, it hired someone to pose as a potential re-seller and buy 150 bottles of shampoo and other products.

Hair Excitement sued, arguing that L'Oreal violated the state consumer protection act by concealing the investigator's true identity. A superior court judge ruled against the salon, and the high court upheld that ruling yesterday. (AP)