In a first, the DCGI has notified draft rules for cosmetics’ testing, manufacturing and packaging, bringing even imported cosmetics under its ambit
The Indian cosmetics industry has been witnessing a lot of action on the regulatory front this quarter. Earlier Amazon, Flipkart and IndiaMart had come under attack by the national regulator for sale of spurious and adulterated cosmetics via their platforms. The e-commerce giants had to de-list all such products from their website and set up checks to impede the sale of counterfeits in future. And now, in unprecedented move, the Drug Controller General of India (DCGI) has released draft regulations for locally manufactured as well as imported cosmetics.
Key takeaways from the draft regulations
The DCGI has formulated the regulations in the view of the escalating consumer demand for beauty and make-up products. The Drugs and Cosmetics Act, 1940 is the current law governing the cosmetics industry. In absence of more specific rules for industry, many manufacturers and importers of cosmetics have been able to evade compliance to directives under the pretext of these being applicable only to pharmaceuticals.
Under the new safety regime, all companies will have to submit key safety information to the DCGI for approval of new products. The draft rules also provide for inspection of the manufacturing and testing facilities, sampling of products and seizure of lots, in case of breach of directives. Companies will henceforth be required to keep records of manufactured batches as well as raw material for at least three years.
Additionally, the new regulation lists procedures and standards for testing and packaging of cosmetic products. The packaging and labelling norms have been prescribed by the Bureau of Indian Standards (BIS). For instance, the planned rules prohibit cosmetics companies from making deceptive and bogus claims. Even testing rules have been made stringent, forbidding the testing of cosmetics on animals. This prohibition extends to imported products as well, outlawing the import of cosmetics tested on animals after October 2014.
The need for regulation
The regulations answer a longstanding need of the beauty industry for sustainable development of quality products. An independent study published in 2015 by the Centre for Science and Environment (CSE), a Delhi-based non-profit organisation, revealed high levels of heavy metals in cosmetics, known to be hazardous to human health. For instance, in spite of India prohibiting the use of mercury in cosmetics, 44 percent fairness creams were found to have mercury in them. Similarly, chromium was found in 50 percent of the lipstick samples tested by CSE, while it is enumerated in the prohibited list for cosmetics. The lax regulations have been a major reason for such nonconformities.
The new safety regime will tackle this gap, ensuring manufacturers and importers of cosmetics are made responsible for the products they market. An industry study by RedSeer Consulting gives vital insights into the Indian cosmetics market dynamics. The $6.5 billion Indian cosmetics market is poised to touch $20 billion by 2025. The 25 percent estimated growth rate of the Indian segment vis-à-vis 4.3 percent of the global cosmetic market, makes it a huge market that is attracting even premium international brands. However, just 25 percent of the market demand is catered to by the organised sector, which retails premium and luxury brands. The major section, 75 percent, of the beauty market is the unorganised, which stocks mass appeal brands, capping the price per product at ₹1000. The growing popularity of online marketplaces has only added to the easy marketing of bogus and illegal cosmetic products.
With such mushrooming demand for cosmetics and fragmented channels of distribution, it is highly unviable to dissuade people from using cosmetics on safety and health concerns. In such a scenario, clear regulations and effective enforcement of the same is vital to consumer welfare as well as industry development.
The final word
The raids by the DCGI in October on the shipping hubs and warehouses of e-tailing giants, Amazon and Flipkart were an eye opener to the vulnerability of the Indian audience to unsafe cosmetics. The new regulations are then, an apt step by the DCGI. But the enforcement of the same and further development of the directives will be vital. For now, the Union Health Ministry has opened the proposed rules to the public for their inputs and observations till the next 45 days. Post the same, the final regulations will be implemented and all violations will be dealt with as per the statutes of the Drugs and Cosmetics Act.
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