The Examined: Beauty Industry Navigates New Regulatory Waters

As the calendar flipped to 2023, the cosmetics world found itself at the dawn of a new regulatory era. On December 30th, 2022, President Biden’s signature on a massive 4,155-page omnibus spending bill ushered in a transformative chapter for beauty industry oversight. Nestled deep within this legislative tome was the Modernization of Cosmetics Regulation Act of 2022, a provision set to reshape the relationship between beauty brands and federal regulators.

This landmark legislation grants the Food and Drug Administration (FDA) expanded authority over the cosmetics sector, marking a significant update to long-standing industry rules. Lindsay Dahl, chief Impact Officer at Vitamin Brand Ritual, hailed the act as a “meaningful step forward” with “real substantial policies” that promise to alter production methods and consumer exposure to certain chemicals. While celebrating this progress, Dahl emphasized the need for ongoing efforts to ensure comprehensive safety measures for cosmetics users.

The new law introduces several critical changes to the regulatory landscape. Perhaps most notably, it empowers the FDA to issue mandatory recalls for unsafe products, a tool previously unavailable in cosmetics. Additionally, the FDA will establish rules for companies to disclose fragrance allergens, addressing a persistent concern in the industry.

Other provisions include mandatory registration for domestic and foreign beauty product manufacturers within a year of the law’s enactment. This measure aims to enhance the FDA’s ability to manage recalls and investigate potential issues. The agency is also charged with developing good manufacturing practices for cosmetics, mirroring standards already in place for over-the-counter drugs like sunscreens and dandruff shampoos.

The legislation directs the FDA to investigate the safety of PFAS chemicals, often referred to as “forever chemicals,” due to their persistence in biological systems and the environment. These substances, valued for repelling water, oil, and heat, have come under increasing scrutiny in recent years.

Another focus area is the standardization of asbestos testing in talc, a response to ongoing controversies surrounding talc-based products and their potential health risks. The law also mandates a study on chemical hair straighteners, following research suggesting a link to uterine cancer, with particular concern for Black women who are disproportionately affected.

While the new regulations represent a significant step forward, some industry experts note that many responsible US manufacturers already adhere to similar standards. Kelly Dobos, a cosmetic chemist and former president of the Society of Cosmetic Chemists, suggests that the law’s most substantial impact may be on smaller, independent brands, particularly those working with overseas manufacturers.

For “clean” beauty brands, the new regulations may not require significant changes, as many already comply with stringent standards set by retailers or self-imposed guidelines. The Credo Clean Standard, for instance, maintains requirements that surpass the new law’s stipulations. However, the legislation is a positive move that codifies and strengthens existing best practices.

It’s worth noting that the law does not directly ban or restrict specific ingredients or mandate supply chain transparency. Critics point out that it also lacks provisions specifically addressing the concerns of BIPOC consumers or the products they frequently use.

Despite these limitations, industry insiders view the act as a signal toward a cleaner future for cosmetics. Raising the regulatory bar encourages the entire sector to move in a more responsible direction. While not explicitly driving innovation, the new law is expected to elevate standards across the board, potentially inspiring further product safety and quality advancements.

Consumers can anticipate greater oversight and potentially safer products as the beauty industry adapts to these new regulations. However, the true impact of this legislative shift will only become clear as implementation unfolds in the coming years.

The Modernization of Cosmetics Regulation Act of 2022 marks the beginning of a new chapter in beauty industry governance, promising a future where regulatory standards and consumer safety take center stage. It signals to the industry that the bar for safety and transparency has been raised, encouraging a shift towards cleaner practices and formulations.

While the law doesn’t directly mandate innovation, it creates an environment where responsible practices are encouraged and required. This could lead to new, safer product formulations and manufacturing processes as companies strive to meet and exceed the latest standards.

As the dust settles on this legislative change, all eyes will be on how the beauty industry rises to meet these new challenges and opportunities. The coming years will likely see a period of adjustment and adaptation as companies big and small navigate the new regulatory landscape, potentially reshaping the market in the process.

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