Cosmetic and skin care giant, L'Oreal has been penalized in Sweden for its misleading ads about anti-wrinkle products and has been slapped with a fine of about $155,040, March 14.

The Swedish Market court ruled that the brand had been deceiving the consumers with its claims that the face creams could remove wrinkles and other signs of aging.

The complaint against L'Oreal was lodged by the Swedish Consumer Agency when it discovered a few products like Vichy Liftactiv Retinol HA, L'Oréal Revitalift Vichy Liftactive CxP and Age Perfect on the brand's site. These creams had been banned by the court back in 2010.

L'Oreal will no longer be able to advertise any product that in any way claims to reduce wrinkles and have anti-aging effects.

"The verdict is a great success and a guide for all companies that market beauty creams. It has now become clearer what one cannot claim either in writing or through images in advertising," Agneta Broberg, deputy consumer ombudsman, said in a press statement.

On the other hand, L'Oreal believes that the ads are not misleading as it has been sticking to the marketing rules of the country.

"L'Oréal Sverige AB has taken note of the decision by the Stockholm City Court regarding an alleged breach of the prohibitions in an earlier decision from 2010 concerning marketing of facial creams. We are disappointed by this decision, which does not reflect the evidence of our products' proven performance," WWD quoted a L'Oréal spokeswoman.

"As a responsible company, L'Oréal Sverige AB complies fully with the local regulations, the EU Directive as well as the European cosmetics industry guidelines. We believe that the advertising is sincere and that the claims are based on documented performance and do not breach the prohibition."

The brand now intends to study the case and make its appeal with the court denying that they have deceived the consumers in any way. "We will carefully examine the decision and have the intention to appeal," the spokeswoman added.