The Michaels Stores Proposition 65 settlement brought by Ecological Alliance LLC was a 2022 agreement with Make It Real LLC over journal and pen sets alleged to contain the phthalate DEHP without the warnings California law requires. Make It Real paid $13,000 and agreed to either reformulate the products or add Prop 65 warnings, and the settlement expressly released Michaels Stores, Inc., as a downstream customer, from further liability on those items.1California Office of the Attorney General. Ecological Alliance LLC v. Make It Real LLC – Settlement Agreement
What the Settlement Covered
In March 2022, Ecological Alliance served a 60-day notice of violation on both Make It Real LLC and Michaels Stores, Inc., alleging that journal and pen sets sold in California contained Di(2-ethylhexyl)phthalate, known as DEHP, without the health warnings Proposition 65 requires. DEHP is listed under the law as a chemical known to the state to cause cancer, birth defects, and reproductive harm.1California Office of the Attorney General. Ecological Alliance LLC v. Make It Real LLC – Settlement Agreement
Make It Real denied the allegations and said its products complied with all applicable laws. The parties reached a settlement in June 2022. Make It Real agreed to pay $13,000 total, broken down as $1,000 in civil penalties and $12,000 covering attorneys’ fees, expert fees, and investigation costs.1California Office of the Attorney General. Ecological Alliance LLC v. Make It Real LLC – Settlement Agreement The civil penalty was split under Prop 65’s standard formula: 75 percent to the California Office of Environmental Health Hazard Assessment and 25 percent to Ecological Alliance.
The release in the agreement is what matters most for Michaels. Although Michaels was named in the original notice as a seller of the products, the settlement provided a full release of claims against Make It Real’s downstream customers, naming Michaels Stores specifically. The retailer was shielded from further Prop 65 liability on those journal and pen sets.1California Office of the Attorney General. Ecological Alliance LLC v. Make It Real LLC – Settlement Agreement
What Make It Real Had to Do Going Forward
Beyond the payment, Make It Real had a choice. It could reformulate the products so they contained less than 0.1 percent DEHP, or it could affix Proposition 65 warning labels to the packaging.1California Office of the Attorney General. Ecological Alliance LLC v. Make It Real LLC – Settlement Agreement This reformulate-or-warn structure is standard in Prop 65 settlements.
Other Proposition 65 Actions Touching Michaels
The Make It Real matter is not the only Prop 65 case to touch Michaels Stores. In a separate 2023 case, an enforcer named Ema Bell alleged that Michaels sold “Celebrate it” brand plates containing lead without proper warnings. Michaels denied liability but agreed to a $25,000 settlement: $2,000 in civil penalties and $23,000 in investigation fees and costs. Michaels had to either reformulate the plates to contain no more than one microgram of lead or provide Proposition 65 warnings on packaging and websites.2California Office of the Attorney General. Ema Bell v. Michaels Stores Inc. – Settlement Agreement
In November 2024, a separate 60-day notice targeted Michaels Stores and its parent, The Michaels Companies, over artist paste paints alleged to contain lead. The products named included Michael Harding brand oil paints and Old Holland Classic Oil Colours sold through Michaels locations.3California Office of the Attorney General. Proposition 65 Notice of Violation – Michaels Stores Inc., Artist Paste Paints Available records do not show a public settlement on that matter yet.
Who Is Ecological Alliance LLC
Ecological Alliance is managed by Harmony Welsh and represented by the Los Angeles law firm Custodio & Dubey LLP.4California Office of the Attorney General. Ecological Alliance LLC – Settlement Agreement (2025) The firm’s co-founding partner, Vineet Dubey, has been described by the Daily Journal as the leading Proposition 65 plaintiff’s attorney in California, and the Attorney General’s office has recorded him as having settled more Prop 65 matters than any other attorney in the country for multiple consecutive years.5Custodio & Dubey LLP. Vineet Dubey – Attorney Profile
In 2024, Ecological Alliance and a related plaintiff called Green Initiative, both represented by Custodio & Dubey, reached 33 Proposition 65 out-of-court settlements totaling $418,000.6CEITA. Prop 65 Out-of-Court Settlements in 2024 – Year in Review The chemicals involved included DEHP, DBP, DINP, lead, and PFOA, across product categories from bags and pouches to sunscreen accessories and feminine care products. Other publicly filed settlements include a $10,200 agreement with Votum Enterprises over sparkle pouches containing DINP sold at Ross Stores7California Office of the Attorney General. Ecological Alliance LLC v. The Crème Shop Inc. – Settlement Agreement and a $15,500 settlement with Baggallini, Inc. over triple-zip bags containing PFOA sold at T.J. Maxx.8California Office of the Attorney General. Ecological Alliance LLC v. Baggallini Inc. – Settlement Agreement
How These Settlements Come About
Proposition 65, passed by California voters in 1986, requires businesses to warn consumers before exposing them to chemicals the state has identified as causing cancer or reproductive harm. The law allows any private citizen or organization to bring an enforcement action against an alleged violator, provided no government agency is already prosecuting the same claim.9The Federalist Society. Bounty Hunters and the Public Interest – A Study of California Proposition 65
The process starts with a 60-day notice of violation served on the business and filed with the California Attorney General. If the state does not step in, the private enforcer can proceed to settlement or litigation. Enforcers must first submit a certificate of merit attesting that they have consulted with an expert who supports the factual basis of their claim.10California Office of the Attorney General. Proposition 65 Regulations
Settlements usually require the business to reformulate the product below a threshold level for the listed chemical or add a Prop 65 warning label. The business also pays civil penalties and reimburses the enforcer’s attorney fees and costs. By statute, 75 percent of any civil penalty goes to OEHHA and 25 percent to the private enforcer, and attorney fees and costs typically make up the bulk of the total payment.10California Office of the Attorney General. Proposition 65 Regulations Defendants rarely litigate. The business carries the burden of proving that any exposure to a listed chemical falls well below a threshold of observable effect, and even successful defendants generally cannot recover their legal costs, so most companies settle.9The Federalist Society. Bounty Hunters and the Public Interest – A Study of California Proposition 65 That structure is why the Make It Real agreement, like most Prop 65 cases, resolved quickly, cheaply relative to litigation, and with a reformulate-or-warn commitment rather than any admission of wrongdoing.