EU Parliament Takes a Stand Against Greenwashing
In a decisive move aimed at curbing deceptive marketing practices in the cosmetics industry, the EU Parliament has adopted the Green Claims Directive, garnering applause from Cosmetics Europe, the voice of national-level manufacturers and associations. The directive seeks to implement a rigorous pre-approval and verification process for environmental marketing claims like "net zero" and "carbon neutral," with the goal of shielding consumers from misleading advertisements.
Cosmetics Europe hails the EU Parliament's commitment to consumer protection and industry integrity, emphasizing the importance of initiatives like the EU Ecolabel certification in promoting transparency and sustainability. Notably, Cosmopak's validation across formulation and packaging serves as a beacon of eco-conscious innovation within the sector.
Addressing concerns over greenwashing, Andrus Ansip, rapporteur for the Internal Market Committee, highlights the imperative of establishing a level playing field and fostering consumer trust. The directive mandates businesses to substantiate environmental claims before marketing products, with penalties for non-compliance including fines and temporary exclusion from public procurement tenders.
While the directive prohibits green claims reliant solely on carbon offsetting plans, businesses implementing carbon removal programs are permitted to articulate such efforts, subject to stringent certification requirements. Additionally, further deliberations are underway regarding green claims involving hazardous materials, underscoring the importance of consumer safety and environmental stewardship.
Looking ahead, Cosmetics Europe advocates for pragmatic timelines and regulatory frameworks conducive to consumer welfare and industry sustainability. As stakeholders navigate these regulatory changes, a shared commitment to transparency and accountability will drive the cosmetics industry towards a greener and more responsible future.
FDA Confirms Safety of Benzoyl Peroxide Amid Benzene Concerns
Amidst heightened apprehension over benzene contamination in personal care products, the US Food & Drug Administration (FDA) has issued a resolute declaration, affirming the safety and efficacy of benzoyl peroxide as an anti-acne ingredient. This comes in response to previous assertions by Valisure, a testing company, suggesting that acne products containing benzoyl peroxide may yield elevated levels of benzene under certain conditions.
The Personal Care Products Council underscores that companies refrain from adding benzene to any over-the-counter (OTC) personal care products. Refuting Valisure's claims, the trade association maintains that the testing methodologies employed by the company are questionable and do not accurately reflect real-world usage conditions.
Highlighting the FDA's critique of Valisure's analytical methods in a December 2022 letter, the industry contends that the lab should adhere to standardised testing protocols akin to those mandated for drug manufacturers.
Navigating Carcinogenic Concerns
The emergence of concerns surrounding benzene contamination in consumer goods has prompted rigorous scrutiny within the supply chain. Valisure, a stalwart in testing and analysis, has filed multiple FDA Citizen Petitions over the years, addressing significant issues pertaining to product safety.
Beginning in late 2020, Valisure expanded its testing capabilities to include benzene analysis, shedding light on the presence of this carcinogen in various consumer products. Notable instances include the detection of benzene in hand sanitizers, sunscreens, antiperspirants, and most recently, benzoyl peroxide products.
Industry Response and Regulatory Action
In response to Valisure's petitions, the FDA has taken proactive measures, issuing recalls for affected products and revising guidance to address benzene contamination. Notable recalls include products from renowned brands like Johnson & Johnson, Coppertone, Procter & Gamble, and more.
Valisure's most recent findings regarding benzene in benzoyl peroxide products underscore the pervasive nature of this issue within the industry. Unlike previous instances where benzene contamination stemmed from raw materials, the degradation of benzoyl peroxide itself into benzene poses broader implications for product safety and regulatory oversight.
Natrue and ENBA Join Forces Against Greenwashing
In a concerted effort to combat greenwashing and elevate the prominence of authentic natural cosmetics, the International Natural and Organic Cosmetics Association (Natrue) and the European Natural Beauty Awards (ENBA) have forged a formidable partnership. This collaboration aims to tackle deceptive practices within the cosmetics industry while spotlighting brands that uphold stringent natural cosmetics standards across Europe.
Mark Smith, director general at Natrue, underscores the perils of unchecked business malpractices, emphasising the potential ramifications on consumer trust and environmental integrity. A recent study by the European Commission has highlighted consumers' growing skepticism and confusion regarding environmental claims, underscoring the urgency of informed decision-making and regulatory intervention.
The alliance between Natrue and ENBA is founded on three pillars:
- Advocating for Natural Cosmetics: Both organisations are committed to promoting brands that adhere rigorously to natural cosmetics standards, ensuring transparency and authenticity in product formulations.
- Supporting Innovation and Sustainability: Recognition will be bestowed upon brands that demonstrate innovation in formulation and production processes, coupled with a steadfast commitment to sustainability and efficacy.
- Increasing Consumer Awareness: Empowering consumers through education about the value of certified natural and organic cosmetics enables informed decision-making and fosters consumer trust.
Smith's inclusion in ENBA's jury further reinforces the commitment to rigorous evaluation and fair adjudication of participating products, leveraging his expertise in the natural and organic cosmetics sector.
A Multi-Faceted Approach to Combat Greenwashing
Smith outlines a multi-pronged strategy to combat greenwashing, advocating for a combination of consumer awareness, industry competition, sustainable innovation, and regulatory refinement. By fostering consumer demand for authentic "green" products and driving industry best practices, stakeholders can collectively mitigate the prevalence of deceptive marketing practices.
The absence of harmonised criteria within the EU Cosmetics Regulation poses a significant challenge in delineating what constitutes a natural or organic cosmetic. Smith underscores the importance of establishing clear guidelines and verifiable criteria through independent third-party certification, such as the Natrue label, to align with consumer expectations and promote transparency in product claims.
Shaping the Future of Cosmetics
Looking ahead, Smith envisions a landscape shaped by emerging EU legislation aimed at curbing greenwashing and substantiating sustainability claims. With heightened consumer interest in natural products, coupled with regulatory scrutiny and industry innovation, the cosmetics sector is poised for a transformative shift towards greater transparency and environmental stewardship.
As Natrue and ENBA champion the cause of authenticity and sustainability, their collaborative endeavors serve as a beacon of hope for a cosmetics industry characterised by integrity, innovation, and consumer trust.
Poland’s Beauty Sector Receives VAT Relief: Boost for Businesses
In a move aimed at levelling the playing field for businesses in the beauty industry, Poland announces plans to significantly reduce VAT rates on beauty services. The decision, slated to take effect from April 1, 2024, aims to provide relief to companies grappling with higher VAT rates compared to other sectors.
A spokesperson from Poland’s Ministry of Finance reveals that regulations are underway to slash the VAT rate on certain cosmetic services from the current 23% to a reduced rate of 8%. This adjustment seeks to extend preferential treatment to services within the broader 'beauty sector,' aligning with the existing 8% VAT rate applicable to hairdressing services.
"This proposed solution is poised to enhance the financial standing of entrepreneurs operating in this sector," affirms the spokesperson.
A Booming Market and Economic Impact
Data from Poland’s Ministry of Economic Development and Technology underscores the significance of the cosmetics industry, ranking fifth in the EU by market size. Despite the challenges posed by the pandemic, the sector is poised for robust growth, projected to reach €4.5 billion (US$4.9 billion) this year.
The burgeoning market is reflected in the surge of newly established cosmetics companies, particularly SMEs, which have witnessed a remarkable uptick over the past four years. Poland’s contribution to Europe's cosmetics industry growth is substantial, accounting for up to 20% of the total increase in the number of cosmetics companies across the continent during the same period.
Delivering Justice for VAT Rates
Poland's move to reduce VAT rates on beauty services aligns with pledges made during the Civic Coalition's election campaign. Prime Minister Donald Tusk emphasises the significance of this decision, particularly for the approximately 30,000 businesses, predominantly small-scale operations, employing nearly 100,000 individuals within the beauty sector.
"I hope that this will bring relief and a sense of justice to a very large professional group," expresses Prime Minister Tusk.
The Ministry of Finance anticipates that the reduction in VAT rates will render beauty services more accessible to consumers, potentially stimulating demand within the market.
Following Ireland’s Lead and EU Directives
Poland’s decision to follow in the footsteps of Ireland, which implemented similar reductions in 2021, underscores a commitment to align with EU regulations. These reductions are made possible through amendments to the VAT Directive, providing member states with flexibility to apply reduced rates in line with principles of equal treatment and consumer welfare.
The directive emphasises that reduced VAT rates should ultimately benefit consumers and serve the general interest, setting a benchmark for Poland's forthcoming regulatory adjustments in the beauty sector.
Shanghai Unveils Regulations for Cosmetics Advertising: Guidelines and Compliance Standards
In a bid to regulate cosmetics advertising practices, the Shanghai Municipal Administration for Market Regulation (AMR) introduced the Shanghai Cosmetics Industry Advertising Compliance Guidelines, effective immediately following its release on March 6, 2024. This move aims to establish clear directives for cosmetic manufacturers and operators engaged in advertising activities across various media platforms in Shanghai.
Key Highlights of the Guidelines
Chapter 1: General Provisions
The Guidelines target cosmetic manufacturers and operators, emphasizing their legal responsibility in ensuring the authenticity and legality of cosmetics advertisements throughout the entire lifecycle—from conception to publication.
Chapter 2: Establishment of a Comprehensive Management System
Cosmetic companies are required to integrate advertising management into their corporate compliance systems, defining clear responsibilities and processes to ensure compliance with regulations.
Chapter 3: Standardisation of Efficacy Claims
Clear guidelines are provided for permissible efficacy claims, aligning them with product registration or notification dossiers and categorized efficacy claims.
Chapter 4: Standardisation of Advertising Content and Forms
Strict requirements dictate the accuracy and clarity of advertising content, with absolute terms and ingredient-related claims under scrutiny to prevent misleading consumers.
Chapter 5: Standardisation of Live Streaming Marketing and Endorsement Activities
The Guidelines extend to live streaming marketing and endorsement activities, emphasizing transparency and compliance in these promotional methods.
Chapter 6: Advertising for Products Targeting Specific Populations
Special provisions address advertising practices targeting specific populations, such as children, ensuring appropriateness and adherence to regulations.
Chapter 7: Supplementary Provisions
Additional provisions cover various aspects, including documentation requirements for advertising and the prohibition of misleading claims.
Annex: Classification Catalog of Efficacy Claims
A comprehensive list of permissible efficacy claims is provided, aiding companies in crafting compliant advertising content.
Enhancing Compliance and Consumer Protection
To ensure compliance, cosmetic manufacturers and operators are obligated to possess specific qualifications and certification documents before publishing advertisements. Additionally, stringent requirements govern the content of advertisements, prohibiting false, exaggerated, or misleading claims. Notably, specific restrictions are imposed on advertising targeting children, aiming to safeguard their well-being and prevent deceptive practices.
Looking Forward
The unveiling of the Shanghai Cosmetics Industry Advertising Compliance Guidelines signifies a significant step in regulating cosmetics advertising practices within the region. By setting clear standards and requirements, the guidelines aim to foster transparency, consumer protection, and fair competition within the cosmetics industry.
Japan Proposes Approval of Cysteamine Hydrochloride for Hair Styling Products
Japan's Ministry of Health, Labour and Welfare (MHLW) has put forward a proposal to include Cysteamine Hydrochloride in the Standards for Cosmetics, with a maximum allowable concentration of 8.63g per 100g. This move, announced on March 8, 2024, marks a significant development in the regulation of cosmetic ingredients in Japan.
Background and Proposal Details
The Standards for Cosmetics serve as a regulatory framework governing ingredient formulation restrictions in cosmetics. Currently, Appendix 2 of the standards outlines limitations on various ingredients, excluding preservatives, UV absorbers, and tar colorants, specifying their names and maximum allowable concentrations per 100g.
In light of evolving cosmetic industry standards, Japan conducted discussions during the Pharmaceutical and Food Safety Evaluation Council's Cosmetic and Quasi-Drug Subcommittee meeting on March 7, 2024. The focus was on the proposed inclusion of Cysteamine Hydrochloride as a new restriction requirement.
Revised Standards and Implementation Timeline
The proposed revision aims to categorize Cysteamine Hydrochloride under two classifications: "Hair styling products used exclusively on the hair and rinsed off" and "Other cosmetics excluding hair styling products used exclusively on the hair and rinsed off." The maximum allowable concentration for hair styling products under this proposal is set at 8.63g per 100g, while its use in other cosmetics is prohibited.
Upon the anticipated implementation of the revised standards in late June 2024, cosmetic manufacturers and distributors will be required to ensure compliance with the updated guidelines. This may involve adjustments to product formulations, manufacturing processes, labelling, and quality control measures to align with the newly proposed regulations.
Public Consultation and Next Steps
The proposal for the inclusion of Cysteamine Hydrochloride in the Standards for Cosmetics is currently open for public consultation until April 8, 2024. Stakeholders and interested parties are encouraged to provide feedback and comments on the proposed amendment.
ECHA Proposes Addition of Two Substances to SVHC Candidate List
The European Chemicals Agency (ECHA) has initiated public consultations on the inclusion of two substances into the Substances of Very High Concern (SVHC) Candidate List. Released on March 1, 2024, the proposal invites comments from stakeholders until April 15, 2024.
Substances Proposed for Addition
- Bis(α,α-dimethylbenzyl) peroxide
- EC number: 201-279-3
- CAS number: 80-43-3
- Proposing authority: Norway
- Reason for proposing: Toxic for reproduction (Article 57c)
- Uses: Manufacture of plastic products, chemicals, and rubber products
- Triphenyl phosphate
- EC number: 204-112-2
- CAS number: 115-86-6
- Proposing authority: France
- Reason for proposing: Endocrine disrupting properties (Article 57(f) – environment)
- Uses: Flame retardant and plasticiser in polymers, adhesives, sealants, cosmetics, and personal care products
Reminder of Corporate Responsibilities
ECHA routinely updates the SVHC Candidate List biannually, with the current tally standing at 240 substances. Products exported to the EU containing SVHC substances exceeding 0.1% must adhere to information transmission and SCIP reporting requirements. If export volumes exceed 1 ton per year, SVHC notification is obligatory.
Corporate entities must be cognisant of their obligations regarding SVHC substances:
- Suppliers must furnish recipients of articles with information on safe use when SVHC content surpasses 0.1%.
- Upon consumer request, comprehensive information—including substance names and concentrations—must be provided within 45 days.
- Importers and manufacturers must notify ECHA within 6 months if export volumes exceed 1 ton per year.
- Since January 5, 2021, substances from the SVHC list present in articles above 0.1% concentration must be submitted to ECHA's SCIP database.
- SVHC-listed substances may be included in the Authorisation List, necessitating authorisation for continued use.
Stakeholders are encouraged to engage in the consultation process and uphold regulatory compliance to ensure the safety and integrity of chemical products in the EU market.
ECHA Enhances Compliance Checks on REACH Registration Dossiers
The European Chemicals Agency (ECHA) has intensified its efforts in ensuring compliance with the Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) regulation. Between 2009 and 2023, ECHA conducted compliance checks on approximately 15,000 registrations, covering 21% of full registrations, marking a notable rise from 5% in 2019. Moreover, compliance checks were carried out on 30% of high-tonnage registered substances, indicating substances with an annual production exceeding 100 tons.
In 2023 alone, ECHA performed 301 compliance reviews on over 1,750 REACH registration dossiers, encompassing 274 substances. The objective was to address potential gaps in information and enhance the safety profile of these chemical substances. To date, ECHA has issued more than 251 requests for data supplementation to various companies.
Moving forward, ECHA remains committed to prioritizing compliance reviews of registered data. Additionally, the Agency will evaluate the impact of the Joint Evaluation Action Plan, designed to bolster REACH registration compliance. Collaborating with stakeholders, ECHA will identify new priority areas for intervention.
Reminder on REACH Compliance
Obtaining a registration number under REACH is just the initial step in compliance, not the conclusion. Enterprises must update their registration dossier in response to any changes in registration information, such as alterations in the registered entity, updates to safety guidelines, adjustments in use conditions or exposure scenarios, and revisions of substance hazard information. Compliance with REACH entails ongoing vigilance and adaptation to evolving regulatory requirements.
