You are thinking of ambergris. It is not legal to trade in ambergris in the US. It was used as a fixative in many perfumes. It starts out as a greyish material that smells of marine faeces, but sweetens when it dries to resemble the odor of alcohol. It is not harvested directly from whales so whales do not have to die in order for it to be collected and used. It is still legal in France and Switzerland. So it is possible that depending on the origin of the lipstick, it may contain ambergris, or as you colorfully call it, whale puke. But I think that it is used most often in high-end fragrances rather than in other kinds of cosmetics.
no. Ambergris is used in the making of perfume. It is a waxy like substance discarded from sperm whale's vomit. Initially, the substance has a foul fecal odor to it. With time, the substance develops a sweeter aroma, more suitable for perfumes. Sometime during the 70's there was an international moratorium placed on ambergris and it's derivatives (perfume, etc) due to it's association with sperm whales. However, since 2005 ambergris which is ethically harvested (along beaches usually) has been used commercially.
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