NEWSLETTER

New Zealand Bans PFAS in Beauty Products, China Eases Regulations for Cosmetics, EU Releases Report on Counterfeits in the Cosmetic Industry and more.

Juenelle Muge
February 2, 2024

EU Takes Bold Step: Cosmetics Manufacturers to Share 80% of Microplastic Cleanup Costs

In a significant stride toward environmental responsibility, the European Union is set to impose regulations compelling cosmetic companies to cover 80% of additional cleanup costs related to micropollution. The provisional political agreement, reached between the European Council and Parliament on revising the urban wastewater treatment directive, aims to fortify industry responsibility and align with the European Green Deal.

Key Highlights:

  • The agreement is a crucial step towards achieving the zero-pollution objective for Europe by setting high standards for treating urban wastewater and preventing the release of harmful substances.
  • The scope of the directive expands to include all agglomerations of 1,000 population equivalent (p.e.) and above, enhancing wastewater treatment standards and ensuring a fair contribution from all sectors to pollution mitigation efforts.
  • Cosmetic and pharmaceutical producers leading to urban wastewater pollution will bear at least 80% of micropollutant removal costs, adhering to the 'polluter pays' principle.

Producer Responsibility and Beyond:

  • The new regulations emphasiSe extended producer responsibility, with producers also covering costs associated with collecting and confirming information about products sold.
  • The EU Commission will assess how this provision might impact the affordability and accessibility of medicines.

Wastewater Treatment Milestones:

  • By 2035, urban wastewater collection systems will be established in agglomerations of 1,000 p.e. or more.
  • Secondary treatment obligations will apply to all agglomerations of 1,000 p.e. or more by 2035, with exemptions for smaller agglomerations and recent EU member states.
  • Tertiary and quaternary treatment deadlines aligned for comprehensive pollutant removal by 2045.
  • Urban wastewater treatment plants mandated to be energy-neutral by 2045, utilizing renewable energy sources and conducting regular energy audits.

Path Forward:

  • The provisional agreement awaits endorsement from member states' representatives within the Council and the Parliament's environment committee.
  • Upon approval, the EU Parliament and the Council will formally adopt the new directive, becoming effective 20 days after publication in the Official Journal of the EU.


Neutrogena Faces Class Action Over Preservative Content: Unveiling the Lawsuit Details

Neutrogena, a brand under the Kenvue umbrella, is confronted with a class-action lawsuit filed in a New York federal court, alleging deceptive marketing of its T/Sal Therapeutic Shampoo as "preservative-free."

Lawsuit Highlights:

  • The lawsuit contends that Neutrogena's T/Sal Therapeutic Shampoo is falsely labeled as 'preservative-free.'
  • Citric acid, identified as a preservative, is reported to be present in the product, leading to allegations of deceptive marketing practices.
  • The legal action accuses the brand of violating New York General Law, breaching express warranty, and engaging in unjust enrichment.

Motivation Behind the Lawsuit:

  • Neutrogena is accused of exploiting consumers' preference for preservative-free products, raising concerns about misleading advertising.
  • The plaintiff seeks damages for themselves and other affected consumers who may have been misled by the brand's marketing claims.

Implications and Consumer Rights:

  • Deceptive marketing practices, if proven, can impact consumer trust and choices, emphasizing the need for transparent and accurate product labeling.
  • Consumer rights and adherence to marketing claims are pivotal aspects, warranting accountability in the beauty and personal care industry.

Conclusion:This class-action lawsuit against Neutrogena sheds light on the importance of truthful product representation and adherence to marketing claims. Consumer trust relies on accurate labeling, and this case highlights the significance of maintaining transparency in the beauty and personal care sector.

EU Report Highlights €3 Billion Losses in Cosmetics Industry Due to Counterfeits

A new report from the European Union Intellectual Property Office (EUIPO) underscores the economic and employment toll of counterfeit cosmetics. The study, analysing data from 2018-2022, reveals that the cosmetics sector experienced a €3 billion (US$3.26 billion) loss, equivalent to 4.8% of sales, due to counterfeit products. Job losses in the cosmetics industry alone are estimated at 32,000.

Key Findings:

  • Counterfeit goods, including cosmetics, cause tangible economic losses and job cuts, with the study covering the impact on clothing, cosmetics, and toy industries.
  • The cosmetics sector faces a significant loss, accounting for 4.8% of sales (€3 billion), leading to approximately 32,000 job losses.
  • Counterfeiting in the cosmetics and toy sectors poses "significant health and safety risks" to consumers, representing 15% of seized counterfeit articles at the EU's borders.

Economic and Employment Impact:

  • The overall impact extends beyond cosmetics, with clothing and toy sectors experiencing substantial losses of 160,000 and 3,600 jobs, respectively.
  • Germany, France, Italy, Spain, and Austria witnessed the most significant losses, totaling nearly €8 billion (US$8.7 billion) in reduced sales of genuine goods.
  • The French cosmetics industry, in particular, faced an annual loss of €800 million (US$870.9 million).

Health and Safety Concerns:

  • Counterfeiting in cosmetics and toys is flagged for posing "significant health and safety risks" to consumers, constituting 15% of seized counterfeit articles at EU borders.
  • The report emphasises the importance of addressing IP crime and its interconnectedness with broader criminal activities.

Collaborative Research Effort:

  • The research, conducted in collaboration with EUROPOL, OLAF, and the European Commission, sheds light on the valuable work undertaken to identify and eliminate fake goods in the EU.
  • The study highlights the role of the EUIPO Observatory and collaboration with key enforcement agencies to combat counterfeiting.

New Zealand  Bans PFAS in Beauty Products

New Zealand's Environmental Protection Authority (EPA) has enforced a ban on the use of per- and polyfluoroalkyl substances (PFAS) in cosmetic products, effective January 30, 2024.

Key Points:

  • PFAS, prevalent in cosmetics like nail polish and foundation, are utiliSed for attributes such as skin smoothness and water resistance but pose environmental and health concerns.
  • New Zealand's precautionary approach aims to protect consumers and the environment from potential PFAS risks, making it among the first nations to implement such a ban.

Cosmetic Products Group Standard Updates:

  • The ban is part of broader updates to the Cosmetic Products Group Standard, aligning it with European regulations and ensuring cosmetic product safety.
  • Changes include regulating non-hazardous cosmetics with hazardous components, revising nanomaterial record-keeping, updating ingredient scopes, and refining format and searchability.

Transitional Provisions:

  • Amendments, excluding PFAS-related changes, have a transitional period until December 31, 2025, for import and manufacture compliance.
  • Full PFAS compliance for cosmetic products is required by December 31, 2026, marking a crucial phase-out period.
  • Sales of non-compliant cosmetic products, including those complying with the previous standard, are prohibited after December 31, 2026, with PFAS-containing products facing a sales ban by December 31, 2027.
  • Cosmetic products that don't meet the standards must be disposed of by June 30, 2027, while those with PFAS ingredients have an extended disposal deadline until June 30, 2028.

Navigating Essential Oil Cosmetics Regulations in China: Key Clarifications

Guangzhou AMR Provides Essential Guidance for Stakeholders

The Guangzhou Administration for Market Regulation (AMR) has issued crucial clarifications regarding the classification and notification processes for essential oil products in China. These clarifications aim to eliminate confusion and ensure a standardised approach to compliance.

Key Highlights:

Understanding Essential Oil Terminology:

  • Essential Oil: Obtained from plant raw materials through methods like water distillation, steam distillation, or mechanical processing. It requires dilution with massage base oil before application to the skin.
  • Absolute: An aromatic product obtained through extraction with ethanol at room temperature.
  • Massage Essential Oil: Blended essential oils for skin care, requiring dilution before application.
  • Massage Base Oil: Mixture of refined oils for diluting massage essential oils.

Identification of Non-Cosmetic Essential Oil Products:

  • Products claiming medicinal effects or serving non-cosmetic purposes (aromatherapy, air purification, etc.) are not considered cosmetics.

Notification Process for Massage Essential Oil Cosmetics:

  • For cosmetics with two or more independent formulas used together, each formula should be filled out separately during notification.

Naming and Claims Compliance:

  • Cosmetic names should avoid medical terms or celebrities.
  • Properties and appearance must not mimic food, medicine, or other products.
  • Efficacy claims should align with cosmetic definitions and avoid medical-like assertions.

Safety Assessment Guidelines:

  • Safety assessments should be exposure-oriented, considering application methods, areas, amounts, and exposure levels.
  • Products used in combination should assess each component separately based on usage instructions.

Implications and Next Steps:These clarifications provide essential guidance for industry players navigating the complex regulatory landscape of essential oil cosmetics in China. Stakeholders are urged to align their practices with these guidelines to ensure compliance and a smooth market entry.

China Eases Regulations for Cosmetics with Low-Concentration Triethanolamine (TEA)

Authorities Announce Exemption from Import License Requirement

In a significant development, China's Ministry of Industry and Information Technology (MIIT), Ministry of Commerce (MOFCOM), and the General Administration of Customs (GACC) jointly declared the removal of the import license requirement for cosmetics containing low-concentration Triethanolamine (TEA) effective from February 1, 2024.

Key Points:

  1. Background on TEA: Triethanolamine (CAS No. 102-71-6) is a dual-use item regulated under the Catalogue of Dual-use Items and Technologies. It is commonly used in cosmetics but also serves as a material in the production of chemical weapons.
  2. Previous Requirement: Regardless of concentration, an import license was mandatory when exporting cosmetics with TEA to China. Exceptions existed for TEA added as a pH adjuster, not detected after a complete reaction with acidic substances, as per the product testing report.
  3. Exemption Criteria: The new exemption streamlines import and export management. While specific concentration criteria aren't provided, the exemption applies to certain consumer products with low-concentration TEA.
  4. Eligible Cosmetics Categories: The announcement lists cosmetic categories eligible for the exemption, including organic surface-active products, perfumes, lip and eye make-up preparations, manicure or pedicure preparations, shampoos, and other hair preparations, among others.
  5. Products with TEA Exemption:
  • Organic surface-active products for skin washing
  • Perfumes and toilet waters
  • Lip and eye make-up preparations
  • Shampoos
  • Manicure or pedicure preparations
  • Pre-shave, shaving, or after-shave preparations
  • Perfumed bath salts and other bath preparations

The complete list may be accessed here.

To note:The announcement lacks specific concentration criteria for "low-concentration," leaving room for interpretation.

Indonesia Proposes Stricter Controls on Online Sales of Certain Cosmetics

In a move to enhance oversight of online cosmetic sales, Indonesia has proposed amendments to the Regulation Concerning the Control of Drug and Food Online Distribution. The draft, released on January 22, 2024, focuses on criteria for online sales of drugs, including cosmetics, with specific attention to the electronic systems used for distribution.

Key Highlights:

Online System Requirements:

  • Businesses can use their own or third-party electronic systems for online cosmetic distribution.
  • System operators and businesses must ensure clear information about the business actor, accurate product labelling, a traceable transaction mechanism, and access for users and supervisors.

Delivery Guidelines:

  • Cosmetic delivery, whether by businesses or third-party entities, must maintain intact and undamaged packaging throughout the process.
  • Products must be delivered in securely closed containers, under appropriate conditions based on product characteristics, and successfully reach the intended destination.
  • Documentation of product handover, especially with third-party involvement, is mandatory.

Prohibited Cosmetic Types:

  • The revised regulation prohibits online sales of specific cosmetics:
  • Skincare products with over 10% alpha hydroxy acid (AHA).
  • Teeth whitening products containing/releasing more than 6% hydrogen peroxide.
  • Refillable cosmetics, defined as those repackaged upon consumer request at refill facilities.

Supervision and Inspection:

  • The Food and Drug Supervisory Agency will monitor online cosmetic distribution through inspections, coaching sessions, and assistance in obtaining business licenses.
  • Non-compliance may result in orders to electronic system operators, including blocking and/or closing Access Uniform Resource Locators (URLs) facilitating the distribution of non-compliant cosmetics online.

Industry Impact:These proposed regulations aim to ensure the safety and integrity of online cosmetic transactions, placing responsibility on both businesses and electronic system operators. Stakeholders are advised to stay updated on these developments as the draft progresses towards formal implementation.

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