10 Companies Including Estee Lauder Caught in High-risk Problems

Recently, the Public Opinion Monitoring Center of China Health Media Group (CHMG) issued a risk warning prompt for “Pharmaceuticals, cosmetics, and medical devices”, and 10 companies such as Estée Lauder were listed due to unqualified products and fire safety problems. The listing data is modeled from multiple dimensions such as negative communication, excessive publicity, business risk, and production violations.

Recently, the Public Opinion Monitoring Center of China Health Media Group under the National Medical Products Administration issued the Enterprise Risk Warning Tips (Phase III of 2022) about “Pharmaceuticals, cosmetics, and medical devices”, disclosing the top ten enterprises in the risk index of cosmetics companies. The warning monitoring period ranges from March 1 to March 31 (due to the rolling update of the monitoring platform data, the risk warning prompt will be dynamically updated as well).

Among them, JINGHONGDA ranked first in the risk index as a “highly concerned enterprise”. The remaining 9 enterprises such as Estée Lauder Companies (hereinafter referred to as “Estée Lauder”) ranked second to tenth respectively, all of which are “key concerned enterprises”.

It is reported that the risk warning prompt data of enterprises about the “Pharmaceuticals, cosmetics and medical devices” is collected from the risk warning platforms of Chinese drugs, medical devices, and cosmetics in China. The platform data assigns different weights to the relevant data in the past 5 years and models multiple dimensions such as negative communication, excessive publicity, complaints and reports, product defects, business risks, penalty lawsuits, and production violations.

The first place in the risk index is JINGHONGDA with a highly concerned risk degree.

On March 8, Beijing time (the time of this article is all Beijing time), JINGHONGDA hair dye cream was notified by the Gansu Medical Products Administration because of the detection of the unmarked approval documents and hair dye on the labels. On March 22, the JINGHONGDA hair dye cream was stopped from sales by the Jiangxi Provincial Drug Administration because it was unqualified. In addition, in January this year, JINGHONGDA was also notified by the Jiangxi Provincial Drug Administration and the Hubei Medical Products Administration due to the problem of unqualified products.

Among the other “key concern businesses”, Estée Lauder was fined $839 by Chinese regulators for failing to eliminate fire hazards promptly.

It is worth mentioning that in January this year, Estée Lauder was fined $374,600 by the MSA for publishing advertising content containing “Youth Index + 77%” through multiple channels for suspected violations of the relevant provisions of the Advertising Law of the People’s Republic of China.

The above 10 companies were listed due to unqualified products, fire safety problems and failure to set up quality and safety leaders by regulations. Among them, 8 enterprises were raised to the risk warning level due to an unqualified total number of colonies and excessive arsenic content.

The supervision of cosmetics quality and safety has always been the top priority of the relevant regulatory authorities in China, and since the promulgation of the new regulations on China’s cosmetics industry, China has continuously strengthened the supervision of the quality and safety of cosmetic products.

With the tightening of relevant laws and regulations in China, “being punished” and “banning business” have also become normalized, and the industry is showing a picture of increasingly rigorous and tightening regulations, especially regarding product safety issues, for which practitioners cannot relax for a moment.




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