Clairol was founded in the 1930s by the husband and wife team of Lawrence M. Gelb and Joan Clair. After discovering a European hair coloring preparation called Clairol, which produced softer, more natural tones by penetrating the hair shaft instead of merely coating the hair, the Gelbs introduced the product to American beauty salons. The real breakthrough came with the introduction of Miss Clairol Hair Color Bath for home use in 1956, promoted by one of the most effective advertising campaigns of the time, "Does she…or doesn't she? Only her hairdresser knows for sure." Clairol’s Nice ‘n Easy represented another innovation, with its quick shampoo-in hair-coloring formula.
Bristol-Myers Squibb sold the Clairol division to Procter & Gamble in 2001.
Following the subsequent acquisition of Wella by P&G, Clairol expanded into the professional sector of the hair care products business. P&G-Clairol is headquartered in Stamford, Connecticut, United States of America.
On June 7, 2007 P&G announced that Clairol, now P&G Beauty, would be closing the Stamford site. The plant in the Cove neighborhood of the city will be split between locations in Massachusetts and Mexico by 2010, and the administration will be moving mostly to Cincinnati by 2008.