Beauty Store Business

AUG 2019

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60 August 2019 | the FDA has not been diligent and our cosmetic ingredients are not sae is that the EU has banned thousands o ingredients, and the FDA has banned only a ew ingredients," Blinko says. "But most o the EU banned ingredients (like rocket uel) have never been used in cosmetic products." However, the EWG asserts that the FDA "will be required to provide technical assistance and additional lexibility or smaller companies to comply with the law. Domestic businesses selling under $500,000 in cosmetics products (or under $1 million i producing in a private residence) are exempt rom registration, while domestic businesses between $500,000 (or between $1 million i producing in a private residence) and $2 million in sales have a simpliied registration process." Finally, the EWG notes, "business size is determined based on the previous three-year average, giving small businesses time to adjust as they grow." Meanwhile, ICMAD doesn't support mandatory recall authority. "Their view is that the FDA can't recall OTC drugs, so why can they in cosmetics?" Schmelz says. "Plus, ICMAD is concerned about ees–would they be a barrier to entry or a lot o companies? With ees and new registration requirements, would we never have the Murads and Perricones, who started small? Would it hinder them to establish themselves and get a oothold in the market? A lot o mom-and-pop businesses starting in their garage might not know the laws or realize they're in violation." Finally, Blinko opines, any proposal should include strong ederal preemption. "Simply put, ederal preemption means that no state would be permitted to impose dierent ingredient or product saety requirements, product labeling requirements, or registration or manuacturing requirements, or levy registration ees on cosmetic products," Blinko explains. "So there would be no more separate state legislation like Caliornia's Prop 65, or like the state microbead legislation that sought to create dierent regulatory schemes or microbeads on a state- by-state basis, which led to the passage o one ederal rule on banning microbeads." Schmelz agrees that ICMAD won't support any bill without clear and strong preemptions, to prevent a patchwork o dierent laws in dierent states. "Personally, I think that's unlikely to ever occur, but unding is an issue as well; are these ees the right number or smaller businesses?" she says. Still, there might be a silver lining: "You have to look at the practical realities, but the two bills aren't so ar apart," Schmelz says. "It wouldn't take much, working in conerence, to align them. The real question is whether in this session they can get this through and get it signed by the president, with everything else going on in our country." ■ Tracy Morin is a reelance writer and editor based in Oxord, Mississippi. "You have to look at the practical realities, but the two bills aren't so ar apart. It wouldn't take much, working in conerence, to align them." —Ronie Schmelz, counsel, Tucker Ellis law irm

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