In October 2020, Ethical Consumer searched the L'Oreal family tree on corporate information website Hoovers. The company had numerous subsidiaries in jurisdictions on Ethical Consumer's current list of tax havens.
For many of these Ethical Consumer was unable to verify whether the companies were serving the local population or not.
Two companies were described by Hoovers as "primarily engaged in the management of the funds of trusts and foundations organized for purposes other than religious, educational, charitable, or nonprofit research." These were considered high risk company types for the likely use of tax avoidance strategies. These were:
L'Oreal Investments B.V. (Netherlands)
Oomes B.V. (Netherlands)
An internet search using the search terms “L'Oréal tax policy statement country” found no country-by-country financial information or reporting (CBCR), nor clear public tax statement confirming that it was this company’s policy not to engage in tax avoidance activity or to use tax havens for tax avoidance purposes. A L’Oréal UK Tax Strategy dated December 2019 was found but did not appear to apply to the company's global operations, and did not refer to tax avoidance.
Due to the fact that L'Oreal did not have country-by-country reporting and two high risk subsidiaries in tax havens it received a worst Ethical Consumer rating for likely use of tax avoidance strategies.