On Tuesday, Loughlin was indicted by federal officials after being accused of being in a college bribery scheme.
Olivia has previously made controversial comments when she revealed to her two million YouTube followers that she didn't "really care about school" but wanted to experience "game days and partying". On Feb. 5, the teen - who has nearly 2 million YouTube subscribers - tweeted, "YouTube will always be my #1 passion".
She's been a longtime star of the channel's Christmas movies and is also is in its "Garage Sale Mysteries" movies and the series "When Calls the Heart". It was not immediately clear whether her products were available in stores.
She posted sponsored content for Amazon Prime on her Instagram account in September that featured an image of her inside her USC dorm room.
Legal experts said that was a hard argument to make since the two students, Erica Olsen and Kalea Woods, got into the elite college. It's been a few weeks since I moved into my dorm and I absolutely love it.
But in a YouTube video previous year, she nonchalantly admitted that she didn't "really care about school" but wanted the "experience" of "partying".
Since news of the scam went viral, Sephora fans demanded the company drop its partnership with Olivia Jade.
"After careful review of recent developments, we have made the decision to end the Sephora Collection partnership with Olivia Jade, effective immediately", a Sephora spokeswoman said in a statement. Olivia, an established YouTube influencer, has already lost one of her business ties (Sephora) because of the controversy.
Is Olivia Jade's career at risk?
"It wouldn't come as a complete surprise if the brands now working with Ms. Giannulli took a closer look at the status of their relationship with her and possibly reconsidered next steps for engagement", said Yuval Ben-Itzhak, CEO of social-media marketing firm Socialbakers. However, now that these allegations have come to light, it's possible her brand could take a significant hit.
Earlier this week, news broke that the 19-year-old's famous parents, Massimo Giannulli and Lori Loughlin, were charged with alleged conspiracy to commit mail fraud and honest services mail fraud in connection with an alleged college admissions scheme.
"A lot of people like to attack me for the way I've grown up because it's really different from a lot of people, and so anything I say that's remotely ignorant or bratty or something that I genuinely don't mean, it gets so much backlash", she said. In addition to Sephora, HP announced it severed its relationship with Olivia Jade, reports Variety.
Another lawsuit by Joshua Toy and his mother said he was denied college admission despite a 4.2 grade point average, and seeks $500 billion of damages from 45 defendants for defrauding and inflicting emotional distress on everyone whose "rights to a fair chance" to enter college was stolen.