Beauty Regulatory Radar: Status Updates and Implications

PROs are being formed. The Circular Action Alliance has been elected in at least two states to serve as a PRO, which is required by law. Petillo strongly recommends contacting the Circular Action Alliance as soon as possible if you think your brand could be affected by these EPR regulations. The Circular Action Alliance (CAA) had a self-imposed registration deadline of July 1 for manufacturers who believe the new regulations apply to them. If you missed it, don’t worry; just contact the CAA as soon as possible to demonstrate your good intentions and your intention to comply with the upcoming regulations.

“We’re in the data collection phase,” Petillo says. “You need to understand what packaging you have, what tonnage, what composition. Going forward, because these are state laws, how much of that packaging is being thrown away in a given state?”

This is not something that the industry has on tap. Because there are fees added to this, the beauty industry really needs to pay attention to this and work with experts in this field because a lot of this is not implemented yet.

“We don’t know what the fees are,” Petillo says. “We don’t know what the landscape is. We don’t know what the tonnage is. We don’t know exactly how the PROs have to deal with all of this. They’re working on it now. But it’s being decided as other states are passing laws, and the language isn’t exactly the same. So it’s very complicated, but very, very important, and it probably affects almost every company in the industry.”

Kelly Kovack has seen a huge call for state legislation from those who see it as a sustainability issue. “MoCRA has been passed, and for some people, that’s not enough,” she says. Big beauty brands have the resources, but for small brands, state legislation is a potential operational and financial burden.

Compliance and regulation are the building blocks of a successful brand, Petillo says. Compliance is not optional, no matter how big or small your brand is. “We’re back to compliance,” he says. “We’re talking about transparency (as an industry). It’s clear that consumers want a legal, safe product. These things are fundamental. Skirting them is not an option.”

Not only do these state changes need to be tracked and implemented for each brand, but brands also need to be involved. And the legislators and regulators who implement these schemes in the industry need to know what’s really going on. Getting involved with trade associations like the IBA is one way brands can stay up to date on some of these changes. The IBA can also provide assistance, resources and recommendations from subject matter experts who can ensure compliance.

Trade associations are the voice of the industry. The IBA is currently monitoring hundreds of bills that could potentially have a huge impact on the beauty industry. Becoming a member means you can influence which bills pass or die on Capitol Hill, and it helps the IBA protect innovation and the industry as a whole.

“We have access to an entrepreneurial market that other industries don’t,” Petillo says. State legislatures are hearing a lot of voices and feeling a lot of pressure, but if they don’t hear the voice of the indie beauty community, our industry will see a lot of laws being passed that are not in the best interest of the industry or its consumers.

“If the United States becomes 50 unique regulatory schemes, that’s something that doesn’t serve consumers. It doesn’t serve the industry and it becomes an insurmountable challenge,” Petillo says.

Beyond the U.S. market, there are also a number of changes in sustainability regulations happening internationally, impacting everything from ingredient suppliers to entire supply chains.

The EU has some restrictions on retinol ingredients, and Petillo says they’re worth keeping an eye on.

“I think sometimes the verbiage of prohibitions and bans gets mixed up with restrictions,” he says. “There are certain ingredients that end up at certain percentages for certain product categories. That’s definitely something to keep an eye on, especially since a lot of state legislatures are looking at the EU.”

The EU recently expanded its fragrance allergen list, so the labeling requirement is now 80%, up from the original 26%. It is also important to note that Canada has also adopted these fragrance allergen labeling requirements. California has also included the EU list in its regulations.

“They are directly referencing the EU list instead of implementing it themselves and evaluating it ingredient by ingredient, and now it’s written into state law,” Petillo says.

Brands will be required to disclose—not label, but disclose—EU allergens in California under its Safe Cosmetics Program. In another nod to trade associations, the Fragrance Creators Association has actually led the charge and mobilized several associations (including the IBA and the Personal Care Products Council (PCPC)) to speak to the department implementing the new law. This month, every brand would have had to disclose all of those fragrance allergens. But thanks to its advocacy, I’ve now agreed to align with the EU timeline, whether that’s 2026 or 2028 for different products.

“Things that are happening internationally are not so international anymore. They are here in the United States,” Petillo says.

The domino effect and reference to it is something that is really worth paying attention to, especially when it comes to the situation in the EU when ingredient restrictions or bans come into force.

The FTC is revising its Green Guides for the first time since 2012. The FTC’s scope includes advertising. “Green” claims, or any claims a brand makes about sustainability and the environment, fall within the FTC’s scope, and the FTC’s Green Guides are intended to provide guidance and information to help companies make decisions. The FTC received a huge amount of comments when it released them for public comment. We don’t have an estimate yet for when that will happen.

To stay up to date with the latest regulatory and sustainability regulations affecting beauty brands, contact IBA. One membership covers the entire team, so you don’t need to buy multiple memberships to stay up to date.

Key conclusions:

• The new MoCRA deadlines are here. The deadline to comply with the new FDA regulations regarding facility registration and cosmetic product listing requirements is July 1, 2024.
• While everyone is watching MoCRA, another regulatory law has gone into effect: Extended Producer Responsibility (EPR) packaging regulations have been passed in four states: California, Colorado, Oregon, Maine; and Maryland is also taking the first steps toward enacting EPR regulations.
• It’s incredibly important for brands to get involved with trade associations because it allows them to stay up to date with what’s happening at the state, federal and international levels.
• The IBA is currently monitoring hundreds of bills that could potentially have a huge impact on the beauty industry. Becoming a member means you can influence which bills get passed or defeated on the Hill, and it also helps the IBA protect innovation and the industry as a whole.
• The FTC is revising its Green Guides for the first time since 2012. We do not yet have an estimate of when this will be finalized.