Brazilian Blowout company settles with state over formaldehyde Rita Wisotsky undergoes a Brazilian Blowout at Argyle Salon in West Hollywood. The treatment can cost up to $500. Glenn Koenig / Los Angeles Times January 30, 2012, 1:51 p.m. The company behind the popular Brazilian Blowout hair-straightening treatment will have to warn consumers that two of its most popular products contain formaldehyde, according to the terms of a settlement the GIB company made with the California attorney general. GIB, based in North Hollywood, had advertised its products to hair stylists - who charge up to $500 apiece for Brazilian Blowout treatments - as formaldehyde-free and safe, according to the attorney general's office, which announced the settlement Monday. "California laws protect consumers and workers and give them fair notice about the health risks associated with the products they use," Atty. Gen. Kamala D. Harris said in a statement. This settlement requires the company to disclose any hazard so that Californians can make more informed decisions. The state sued GIB in November 2010, charging that its testing found that the straightening solution used in the treatments contained high levels of formaldehyde, which can cause respiratory problems, skin reactions, headaches and other ailments. The complaint centered on two products: Brazilian Blowout Acai Smoothing Solution and Brazilian Blowout Professional Smoothing Solution. California's Safe Cosmetics Act and specifically Proposition 65 require businesses to notify consumers about exposures to chemicals in the products they purchase. GIB had said that its own tests found only 0.0002% formaldehyde in the product, low enough to qualify for the "formaldehyde-free" label. New treatments to smooth and straighten hair Brazilian Blowout formaldehyde questions continue Brazilian Blowout might be dangerous to your health