By: Ronie Schmelz
Counsel at Tucker Ellis LLP
Despite Deregulation in 2017, Cosmetic Companies Remain FDA Focus
President Donald Trump has made deregulation a cornerstone of his administration, demanding that for every new regulation proposed, regulatory agencies identify two regulations for elimination; however, this directive has not impeded regulatory oversight at the U.S. Food and Drug Administration (FDA). Although the number of FDA Warning Letters sent to cosmetic, skin care, and other personal care companies has decreased significantly under the new administration, these companies still remain a focus for FDA. While the future is impossible to predict, the following summary of regulatory activity in 2017 provides a good guidepost for the types of claims to avoid so that your company does not become the recipient of an FDA Warning Letter.
Cosmetics 101 Starts with Product Safety
By: ICMAD — Independent Cosmetic Manufacturers and Distributors
CPNA interviewed a leading expert in the industry – Craig Weiss – in anticipation of ICMAD’s Technical/Regulatory Forum that is held February 13-14, 2018 in Newport Beach, California.
Craig Weiss, the President of the Consumer Product Testing Co. (CPT), is no stranger to the cosmetics industry. As he puts it “I was practically raised in the company.” That company is the Consumer Product Testing Co., which Craig’s father Mel started in 1975. CPT is a toxicology facility doing acute testing work for the cosmetics industry. Mel introduced Craig to the industry when Craig was young and by age 13 he was in the facility with his Dad learning by osmosis. When Craig graduated from college with a bio-chemistry degree, his father said there was no job for him at Consumer Product Testing and so Craig, undaunted, “cut his teeth” in other parts of the cosmetics industry until he joined CPT in 1991. Almost 27 years later, Craig is the President, running a $15M operation with 130 employees. CPT tests all types of products and devices from cosmetics and sunscreens, to medical devices and over-the-counter drugs.
Jamie Merriman is Acting Director of ITA’s Office of Strategic Partnerships
With more than $12 billion in exports in 2016, U.S. branded personal care and cosmetics are among the most highly desired brands in many overseas markets. During the past five years, U.S. exports in the sector have grown at five percent to six percent annually. Employing thousands of Americans across the country, the U.S. personal care and beauty industry is a critical component of the U.S. economy.
Importing and Exporting can be a daunting task for brand owners the first time they are doing so. Do contact a Freight Forwarder for assistance, and for tradeshows contact the recommended forwarder. You do not have to use them in most cases, but it is wise to at least be in contact to be sure things are done properly. Don’t always go with the least costly alternative. Commercial Freight Forwarders may not know the nuances of getting samples and prototypes into a country for a tradeshow. They may also not be familiar with the drayage practices as they vary all around the world.
If you’ve ever been to California, you’ve probably seen the foreboding signs proclaiming “WARNING: This [product/place] contains a chemical known to the State of California to cause cancer, birth defects, or other reproductive harm.” Though you might be tempted to infer that California is a particularly cancer-laden state, these warnings are merely the product of California Proposition 65 (“Prop 65”), a “right to know” law that requires retailers, manufacturers, and importers to provide warnings to Californians if a product contains certain listed chemicals. The penalty for failing to provide the requisite warning can be steep – as high as $2,500 per product, per day. If you are going to do business with California residents, here’s what you need to know about Prop 65.
Beauty Business in Brazil
Brazil currently holds the position as the third highest ranking country in the world’s Cosmetics Toiletry, and Fragrance (CT&F) market according to the 2013 Euromonitor Report.
The Spanish Cosmetics and Perfumery market exceeds 9.3 billion € with an internal consumption of 7 billion € in retail sales prices. Export numbers were 12% higher this year than the previous; that is 2.7 billion exports made for a positive trade balance in 2014.
EXPLORE YOUR OPTIONS WITH AN EXPERT
Professional Beauty Association (PBA) in conjunction with U.S. Department of Commerce provides a solid informational webinar to help your U.S. business sales transition into international sales.
How to Conduct Business in the U.S. Distribution and Sales of Cosmetics Market
with Sharon Blinkoff
Cosmetic company brands around the world see the U.S. market as one of the top countries for distribution for its ability to reach the highest number of consumers. This translates to major sales. Revenue estimates from Statista studies show that from the years 2002 to 2013 there has been a financial increase totaling to 16.21 billion dollars. Statista also estimates that between now and the year 2016, revenue for the U.S. cosmetics market will increase to a staggering 3.67 billion dollars.
The US beauty industry is increasing their global market share. The U.S. Commercial Service (the federal government’s export trade promotion unit within the U.S. Department of Commerce) is represented in U.S. embassies and consulates in 72 countries, accounting for more than 95 percent of the world market for U.S. exports. International trade shows such as Cosmoprof provide a platform to allow buyers and sellers from across the globe to connect with one another in secure environment conducive to open discussions. The eleventh annual event will deliver a strong international presence with exhibitors from 38 countries, eight official Country Pavilions and a contingency of foreign buyers from six different countries.