Loughlin's 19-year-old daughter, Olivia Jade, Giannulli launched a makeup palette with the Sephora brand in December. Giannulli is a well-known influencer who boasts over 1.4 million followers on Instagram and has a considerable audience on his YouTube channel focused on beauty and lifestyle.
"After a careful review of recent developments, we made the decision to close the Sephora Collection partnership with Olivia Jade, with immediate effect," Sephora said in a statement to ABC News. The palette is no longer available for purchase on the retailer's website.
Loughlin, her husband Mossimo Giannulli and actress Felicity Huffman are among the dozens of people accused in relation to the scheme. Federal prosecutors said parents paid millions of dollars to admissions advisers William "Rick" Singer to bribe their children in college.
Some of the payments went to coaches and administrators to falsify their children as famous athletes, and Singer also hired players to take student entrance exams for students and paid testers in the centers to correct student responses.
Singer, founder of the Edge College & Career Network in Newport Beach, California, pleaded guilty on Tuesday.
Operation Varsity Blues: how the alleged college admissions scam developed
The Associated Press contributed to this report.