No it isn't i definitely think that L'Oreal makes some really good foundations. They have some many different types such as true match, infaliable and powders that can really make your face look flawless.
I have oily skin and if I run out of my Bobbi Brown Foundation I always tend to use L'oreal True Match Liquid foundation. This foundation is so blendable and there are so many colors to choose from, so if you like liquid foundations i suggest that you get this foundation from their range.
I find that their foundations work quite well and its not that bad for your skin. I have oily skin and i didn't really get and break outs of acne or anything so I found that this foundation has not harmed my skin. If you have sensitive skin you should think twice about this foundation because one of my friends who has this foundation has sensitive skin and she says that it can sometimes sting when she applys it. But if you have dry skin and combination skin it really helps to moisturize your skin as well. But overall I don't think that liquid foundation from L'oreal is bad, they are actually quite a good drugstore foundation and they give quite good coverage and are really blendable. I actually haven't heard anyone that uses L'oreal foundation that had a really bad reaction to it either. So if you are looking for a good foundation on a budget I suggest you get this one or Revlon's Colorstay foundation.
Hope This Helps :)