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China’s Cosmetics Industry Faces Stricter Regulations against the Illegal Practice of “One Product, Multiple Purposes”!

The final barrier of one registration number for multipurpose in cosmetics products is being dismantled.

Recently, CHAILEEDO has noticed that several brands have publicly announced the packaging for the sale of special use cosmetics. At the same time, notices have been issued in provinces like Henan, requiring companies to upload the packaging information of special use cosmetics within a specified period, or else face legal consequences.

In response to this, industry experts have candidly stated that the public disclosure of packaging for special use cosmetics means that fraudulent practices will be completely blocked and that the era of asymmetry between registration and regulation information will come to an end.

Special use cosmetics must upload packaging images

CHAILEEDO has noticed that several Chinese and international beauty brands have recently uploaded and publicly disclosed the packaging for their special use cosmetics on the National Medical Products Administration’s query platform. For example, a domestic brand obtained approval for its sun protection products in June of this year and uploaded the packaging for sale in September.

Furthermore, CHAILEEDO discovered through a search on the aforementioned platform that several brands have recently uploaded packaging for multiple special use cosmetics that were approved last year or even earlier for market launch. The product shown in the image below obtained special certification in December 2022, and the company uploaded the packaging for sale in July of this year.

In comparison to the packaging uploaded for regular cosmetics, the packaging images for special use cosmetics also include two parts: “3D image” and “2D image.” When randomly selecting the packaging image for a product, the packaging design, brand name, product name, ingredient list, registration certificate number, registrant, and manufacturer’s key information are clearly visible.

As is well known, according to regulatory requirements, the actual packaging for products sold on the market must be consistent with the packaging at the time of registration and filing. The public disclosure of packaging for special use cosmetics means that the gray area of fraudulent practices is being completely eradicated.

It is worth mentioning that in the section of cosmetic market launch packaging, it is stated: “The product label images of this product are uploaded by the cosmetic registrant without verification by the drug regulatory department. The authenticity and compliance of the related content are the responsibility of the registrant.” This indirectly strengthens the responsibility of the companies themselves, meaning whoever registers the product is responsible.

However, CHAILEEDO’s search revealed that the number of brands that have publicly disclosed packaging for sale is still relatively small. Among the dozens of well-known brands or contract manufacturers’ products searched by CHAILEEDO, the number of products with disclosed packaging for sale is only in single digits.

Looking back, as early as May 2021, the officially implemented “Regulations on the Management of Registration and Filing Information for Cosmetics” clearly required that when regular cosmetics are undergoing filing and before special use cosmetics are launched, the registrant, filer, or domestic responsible person should upload product label images of the packaging. The uploaded label content and instructions should not exceed the content specified in the product label sample draft, strictly regulating label content.

So why has the regulation, which was issued two years ago, been implemented so slowly? In response to this, industry insiders have stated that the new registration and filing platform for cosmetics was officially launched on May 1, 2021, and it has only been a little over two years. The related functions are still in the early stages of exploration and improvement, while also allowing companies a certain transition period.

However, as the National Medical Products Administration has cracked down on the practice of “one product, multiple purposes” for special use cosmetics this year, the public disclosure of packaging for special use cosmetics has become a powerful measure and has been put on the agenda.

Recently, there has been news that the National Medical Products Administration’s Cosmetic Intelligent Declaration and Evaluation System issued a “reminder,” requiring that after obtaining a registration certificate for special use cosmetics, the registrant should upload the product label images for products to be put on the market before their launch.

The system also indicates that once the registrant uploads the product label images, the relevant content can be queried on the National Medical Products Administration’s website. The product label images for products sold on the market should correspond to the product safety and efficacy claims specified in the registration certificate sample draft, and their authenticity and compliance are the responsibility of the registrant.

In response to this, industry insiders have stated, “When submitting for evaluation, packaging and other materials need to be provided. Now, public disclosure online is mainly to prevent changes in product labeling due to fraudulent practices. In fact, during the filing process for regular cosmetics, everyone has already been uploading product images based on the actual physical products, but due to various reasons, special use cosmetics have not been fully implemented.”

Multiple places issued documents urging companies to “correct within a time limit.”

In June of this year, the Cosmetics Supervision Department of the National Medical Products Administration held a meeting to deploy a special inspection on the illegal practice of “one product, multiple purposes” in cosmetics, officially launching the crackdown on fraudulent practice since the beginning of this year.

Now, after more than six months, the crackdown on fraudulent practice has yielded fruitful results, and the public disclosure of special use cosmetics packaging has effectively closed the last loophole for fraudulent practice.

CHAILEEDO has noticed that there are already specific local regulations regarding the public disclosure of special use cosmetics packaging, requiring companies to make corrections within a specified period. For example, the Henan Provincial Medical Products Administration was the first to issue a notice on “the matters related to uploading sales packaging for special use cosmetics” in July of this year.

CHAILEEDO has observed that the notice specifically mentioned 24 types of special use cosmetics that have not uploaded sales packaging images, and it required them to complete the rectification work on the new registration and filing platform before July 30th of this year. Failure to correct as required within the specified time will result in legal disposal.

In addition, in October of this year, the Beijing Municipal Medical Products Administration stated on its official public account “Beijing Medical Products Administration” that it would “urge companies to upload historical sales photos of special use cosmetics.”

Regarding the public disclosure of special use cosmetics packaging, many industry insiders believe that it is of significant importance for the healthy development of special use cosmetics and the protection of consumer rights.

Shi Changsong, the R&D Director of Guangdong Baiya Cosmetics Co., Ltd., believes that “the public disclosure of special use cosmetics packaging has a very obvious role in combating ‘fraudulent certification.’ On the one hand, it facilitates the regulatory authorities to have a legal basis for enforcement, and on the other hand, it enables consumers to obtain effective information about products through the National Medical Products Administration platform, thereby enhancing their ability to identify products.”

With the public disclosure of special use cosmetics packaging, consumers will be able to confirm whether a product is falsely labeled by directly comparing the labels on the product’s sales packaging with the label images published on the National Medical Products Administration’s official website.

A senior cosmetic engineer in the industry stated, “After the public disclosure of special use cosmetics packaging, all fraudulent practices will be blocked because once the packaging is disclosed, it means that the product’s trademark, name, specifications, ingredient information, and even the manufacturer’s information are all made public. This ensures that the products on the market are completely consistent with the filing information.”

“In addition to cracking down on fraudulent practice, the public disclosure of packaging also has a certain deterrent effect on companies’ arbitrary changes to registered images in the future. It is conducive to the regulatory authorities in identifying the authenticity of products and prevents companies from evading responsibility by claiming ‘counterfeit products.’ It benefits the entire market supervision system,” added another industry insider.

It can be seen that the public disclosure of special use cosmetics packaging will not only severely impact the illegal practice of “one product, multiple purposes,” but also signify the end of the era of asymmetry between special use cosmetics registration and regulatory information.

Over 700 companies have made corrections, crackdown on “one product, multiple purposes” continues

CHAILEEDO has noticed that since June of this year, regulatory authorities from various regions to e-commerce platforms have launched a vigorous crackdown on the practice of “one product, multiple purposes.”

Shortly after the National Medical Products Administration issued its announcement, in July of this year, Alibaba’s official headline platform issued the “Special Action Promotion for ‘One Product, Multiple Purposes’ in Cosmetics” for cosmetic sellers, followed by Douyin (TikTok) releasing the “Special Governance Announcement for ‘One Product, Multiple Purposes’ in Cosmetics” in early July.

Under the crackdown, several brands have been named or punished for “one product, multiple purposes.” According to incomplete statistics from CHAILEEDO’s special report, as of November of this year, at least 8 companies have been fined for suspected “one product, multiple purposes.”

At the same time, recently, the Jiangxi Provincial Medical Products Administration released data showing that in the concentrated inspection and governance action against “one product, multiple purposes” in cosmetics, the province has cleared 5,730 illegal products, ordered corrections for as many as 669 companies, and investigated 79 cases.

In addition, many provinces and cities such as Guangdong, Shandong, Yunnan, Shanghai, and Chongqing have launched special inspections on the practice of “one product, multiple purposes” in cosmetics. Among them, in the cities of Shanwei and Yunfu in Guangdong province, 32 and 21 companies respectively were ordered to make corrections, and over twenty companies were investigated and punished. In Ningxia, 9 companies were ordered to make corrections, and 63 cases of various cosmetic products were investigated, resulting in a fine of 202,200 yuan.

Overall, the recent public disclosure of special use cosmetics packaging is undoubtedly a strong measure to continue the crackdown on the illegal practice of “one product, multiple purposes” this year. For companies, abandoning the shortcut of seeking undue advantage and embracing compliance is the only way forward.

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