Fair Cosmetic Packaging and Labelling

Product information is required on packaging for identification purposes to help both professionals and consumers understand product contents and who to contact for more information. The Fair Packaging and Labelling Act took effect in 1967 after it was passed by Congress the previous year. This federal law supersedes all state laws. Here are details on how this law applies to fair cosmetic packaging.

Basic Labeling Requirements

1. product identity
2. contact information for the manufacturer and packer/distributor
3. net quantity of package contents in both metric and US customary units

Purpose of Fair Cosmetic Packaging Regulations

Congress wanted to make sure consumers have the opportunity to research accurate information about packaged commodities in various industries before making purchasing decisions. Usually this type of legislation is a result of too many complaints about marketers taking advantage of consumer ignorance through false or misleading advertising. Despite the regulation, however, some vendors still try to get away with exploiting society's lack of scientific knowledge regarding raw materials and measurements. Sometimes the problem gets deeper with products made of dangerous substances disguised as more generic or vague ingredients.

By passing this consumer protection law, federal authorities hold cosmetic manufacturers and distributors to higher standards than the early days of the industrial revolution. Although regulations are fairly straightforward and relatively not as comprehensive as other laws, cosmetic makers must be in compliance in order to avoid penalties and play a high profile role in the industry. Failing to meet these basic requirements could result in fines or recalls.

Chapter 39 of theFair Packaging and Labelling Program specifically prohibits distributors to engage in unfair and deceptive packaging. Exemptions, however, are made for wholesalers or retail distributors, who are not bound to participate in the packaging or labelling requirements of commodities, as defined by the Federal Food, Drug and Cosmetic Act.

Product Identity

The commodity must include a label that identifies the product, which is typically its usual brand name. In other words, the name should not confuse the consumer with a similar product or a more popular competitor. Small companies that try to exploit the names of more well known brands with misleading names are in violation of this regulation.

Contact Information

The label must contain the name and place of business of the manufacturer, packer or distributor. Typically this means the physical address of these entities. While the law does not specify that a phone number must be given, many companies provide a contact number to show that they have an open door policy to communicate with customers, trade professionals and authorities.

Package Contents

Although the manufacturer is not required to divulge trade secrets on the packaging, the firm must list ingredients in the order of decreasing predominance on the label if the product contains two or more ingredients. The packager must prevent containers from housing misleading "nonfunctional slack-fill" (the difference between container capacity and the product). In order words, the company cannot try to cheat the consumer with too much empty space in a package.

Fair cosmetic packaging means that the package content must match the information that is listed on the label in terms of ingredients and net quantity. Consumers must be able to make fair value comparisons with other competing retail products.

Net Quantity

The net quantity of product contents, as measured by amounts that describe weight or mass, must be included on the label as well. Alternatively, the number of units within the package may be listed instead. Measurement based on size must include both inches/pounds, depending on appropriate terminology, as well as metric units. In other words, for some cosmetic products, quantity will be measured in weight, while others will be measured in area or number of units.

In the case of liquids, the measurement can be listed as whatever best represents the most appropriate largest whole unit, such as quarts or pints. Decimal fractions may be used for precision. For products that occupy area, appropriate measurement units may be in square inches or square feet.

Government Enforcement of Regulations

As per section 1456, enforcement of fair cosmetic packaging regulations includes government oversight of (a) misbranded consumer commodities, (b) unfair or deceptive acts or practices in commerce and (c) imports. Misbranded consumer commodities are defined by the Federal Food, Drug and Cosmetic Act. Examples of misbranding on the label include:

• false or misleading information
• omission of the name and address of the manufacturer, packer or distributor
• unlisted net quantity of contents
• information that is inconspicuous or difficult to read
• misleading nonfunctional slack-fill

The label must clearly state the intended use of the product and the potential risks from misuse of the product. Courts typically rely on consumer interpretations of label meanings instead of the company's intended definition. Cosmetic entities essentially must avoid disguising ingredients that are designed to cut corners on quality, quantity or cost in such a way that deceives the consumer. All imports into the United States must comply with regulations of the Federal Food, Drug and Cosmetic Act.

Conclusion

The cosmetic industry is one of the least regulated industries in America, but it must still comply with the Fair Cosmetic Packaging and Labelling Act, as well as the Federal, Food, Drug and Cosmetic Act and other consumer laws. Entities that oversee these regulations include the FDA and the FTC. The requirements mainly involve publishing accurate company and product information on labels.

Disclaimer:
The postings in this blog section do not necessarily represent Desjardin's positions, strategies or opinions.