Recently, according to administrative penalty information disclosed by the National Enterprise Credit Information Publicity System, two batches of liquid soap under REPAND, a subsidiary of Guangzhou COGI Cosmetics Co., Ltd. (“Guangzhou COGI”), were fined over 20,000 yuan for not obtaining cosmetic filings before being put on the market.
In response to this, industry experts have stated that “there are currently many ‘liquid soaps’ on the market that do not strictly fit the definition of soap, but they enhance the value of their products by emphasizing the cosmetic effects in their product claims. This penalty case serves as a warning to related companies.”
REPAND was fined for selling unregistered “liquid soap.”
According to the administrative penalty decision, Guangzhou COGI produced two products, “REPAND Artemisia Antibacterial Liquid Soap” (Production Batch Number: GZEECE07) and “REPAND Sea Salt Antibacterial Liquid Soap” (Production Batch Number: GZEFAK24), and put them on the market for sale.
Upon investigation, both of the aforementioned products claimed to comply with the Q/GZSGZ liquid soap standard, which is an enterprise standard developed by Guangzhou COGI. However, in reality, neither product contained sodium fatty acid and they were in liquid form, which does not meet the definition of soap according to the QB/T2485 soap standard. Therefore, both products do not qualify as soap.
Furthermore, the main ingredients of the two implicated products, such as cocamidopropyl betaine, are listed in the “Catalog of Used Cosmetic Ingredients (2021 Edition)”. The products are intended to be applied to the skin and other body surfaces by means of wiping, with the purpose of achieving cleanliness.
In addition, Guangzhou COGI provided relevant test reports regarding the “antibacterial” effect of the mentioned products, and the test results indicated that “the product has antibacterial effects against Escherichia coli (ATCC25922) and Staphylococcus aureus (ATCC6538).”
Based on these findings, the Huadu Market Supervision Bureau in Guangzhou determined that the implicated products fall within the definition of cosmetics and should be registered as ordinary cosmetics. However, both products were put on the market for sale without obtaining the necessary registration. Among them, “REPAND Artemisia Antibacterial Liquid Soap” (Production Batch Number: GZEECE07) sold 199 bottles, and “REPAND Sea Salt Antibacterial Liquid Soap” (Production Batch Number: GZEFAK24) sold 98 bottles. Both products cannot be recalled. The total value of the implicated products is 4,364.8 yuan, with illegal gains amounting to 653.4 yuan.
Finally, in response to Guangzhou COGI’s act of selling unregistered liquid soap products, the Huadu Market Supervision Bureau decided to confiscate 1,129 bottles of “REPAND Artemisia Antibacterial Liquid Soap” (Production Batch Number: GZEECE07) and 558 bottles of “REPAND Sea Salt Antibacterial Liquid Soap” (Production Batch Number: GZEFAK24), confiscate illegal gains of 653.4 yuan, and impose a fine of 10,000 yuan. Additionally, a fine of 10,000 yuan was imposed for the act of producing liquid soap products with non-compliant labels, resulting in a total penalty of 20,600 yuan.
Is soap considered a cosmetic? Official response clarifies
According to the National Enterprise Credit Information Publicity System, Guangzhou COGI was established in 1999 with a registered capital of 83.8 million yuan. According to the official website of Guangzhou COGI, the company owns multiple brands including REPAND, Anais, LITONG, First Cabin, and BIELLA, covering various areas such as hair care, body cleansing, skincare, and daily cleaning. In addition to its own brands, OEM and ODM businesses are significant sources of income for Guangzhou COGI, serving clients such as Liby Group, as well as brands like Queen’s Circle, Meikeshu, Zizhiquan, and Xuelian Manor.
Among these brands, REPAND is the most well-known personal care brand under Guangzhou COGI. It was established in 1996 and offers products such as shampoo, body wash, and conditioner. According to public information, during its rapid growth phase, REPAND signed contracts with famous celebrities such as Zhao Wei, Shu Qi, and Huang Shengyi to be brand ambassadors, making the slogan “People rely on clothing and cosmetics, beauty relies on REPAND” widely known.
In 2017, a representative of REPAND stated in a media interview, “Under the influence of advertising and marketing, REPAND’s revenue exceeded 50 million yuan in 2000. Between 2000 and 2004, REPAND’s annual sales grew by an average of 300%, becoming a daily chemical brand with annual revenue in the hundreds of millions.”
Today, searches on major e-commerce platforms such as JD.com, Taobao, and Pinduoduo for the two products in question from REPAND did not yield any available products for sale.
Regarding the penalty imposed on Guangzhou COGI for the two non-compliant liquid soap products, a senior industry expert in the cosmetics field commented, “Products that have normal sterilization and antibacterial properties are under the jurisdiction of the Health Commission. However, antibacterial agents cannot be declared for suppositories or soap, which means the implicated products do not fall under the jurisdiction of the Health Commission. But their formulation and usage methods actually classify them as cosmetics, which led to their classification and subsequent penalty as cosmetics.”
“There is some controversy surrounding the imposed penalty,” said an engineer in the cosmetics industry. Currently, there is no clear definition for liquid soap, and enforcement seems hasty. The engineer revealed, “A new industry standard for liquid soap is about to be released, which includes a clear definition for liquid soap. If companies violate the standard after its release and are subsequently penalized by regulatory authorities, it will be more reasonable and justifiable.”
Furthermore, in the soap industry standard “Soap” (QB/T 2485-2008), soap is defined as “sodium fatty acid soap produced by grinding process and cooling molding process, as well as block soap, medicated soap, transparent soap, etc., primarily composed of sodium fatty acid and supplemented with other surfactants, functional additives, and auxiliary agents.”
Based on the definition of soap, the aforementioned senior industry expert in cosmetics stated, “The implicated products clearly do not meet the definition and are actually formulations similar to body wash. Behind this lies the fact that the company wanted to exploit regulatory and standard loopholes for illegal production and sales.”
It is worth mentioning that as early as September 2023, the Guangzhou Municipal Administration for Market Regulation clarified in the “FAQs on General Cosmetic Filing” that “liquid soap” and “soap liquid” products used on the human body, although having the word “soap” in their names, do not meet the definition of soap according to QB/T 2485-2008 and are actually similar to body wash and hand wash products. Therefore, based on factors such as product formulation, usage methods, intended purposes, and application areas, they may still fall under the category of cosmetics.
Moreover, the “FAQs” further clarified the distinction between soap and cosmetics, stating, “Soap with only general cleansing effects is regulated as general daily chemical products, while soap claiming specific effects such as ‘whitening’ and ‘sunscreen’ is subject to special cosmetic registration.” It emphasized that “soap claiming special cosmetic effects falls under the ‘Regulations on the Supervision and Administration of Cosmetics’ and is subject to cosmetic production permits.”
The proliferation of “mite removal” and “whitening” liquid soaps on the internet.
In fact, the case of Guangzhou COGI’s penalty is not an isolated incident. According to another publicly available administrative penalty information this year, on September 19, 2023, a certain biotechnology company in Guangzhou produced 287 bottles of “Sulfur Mite Removal Liquid Soap” (net content: 400ml, batch number: MFG20230919) on behalf of a certain e-commerce company in Guangzhou. The product claims to extract sulfur spring water for gentle mite removal, mite repellent and antibacterial effects, and regulation of skin’s oil-water balance. The instructions state to dispense an appropriate amount of liquid soap in the palm, cleanse the whole body by massaging, and rinse with water.
In the end, the Guangzhou Baiyun Market Supervision Bureau determined that based on the characteristics (liquid), formulation, usage methods, intended purposes, and application areas of the implicated product, it should be regulated as a cosmetic. Guangzhou Biotechnology Co., Ltd. sold the product without obtaining cosmetic filing, resulting in a total penalty of 13,476 yuan.
On June 28 of last year, according to the Guangzhou Baiyun District Market Supervision Bureau, Guangzhou Safina Daily Chemical Co., Ltd. was fined 50,000 yuan for producing whitening soap that was determined to be an unregistered special cosmetic product produced without a license.
CHAILEEDO has noticed that “liquid soap” and “soap liquid” products are particularly common on major e-commerce platforms, and many of them claim to have effects such as “mite removal,” “antibacterial,” “whitening,” and “acne removal.”
For example, a leading product on a certain e-commerce platform is a “Sulfur Spring Mite Removal Liquid Soap” that claims to have deep mite removal, effective antibacterial properties, skin nourishment with medicinal ingredients, and moisturizing effects. It is recommended for facial cleansing, hair washing, and bathing. However, based on the claimed effects and intended purposes, this product clearly falls under the category of cosmetics. However, the customer service of the store claims that the product is “sulfur soap, not a cosmetic.”
Another example is a well-known brand of essential oil liquid soap that claims to have “whitening and moisturizing” effects. According to the product details page, it is described as non-sticky and non-slippery compared to traditional soap and regular body wash.
Regarding the false claims of “liquid soap” and “soap liquid” on the market, Pan Guangle, a senior industry engineer in cosmetics, analyzed, “Soap products do not need to undergo product registration and filing, which greatly reduces the possibility of regulatory inspections. Products claiming to have acne removal and whitening effects, such as ‘liquid soap’ and ‘soap liquid,’ are using the regulatory characteristics of soap products to deceive. However, liquid soap products claiming to have acne removal and whitening effects should be regulated as cosmetics.”
Li Jincong, the founder of the Cosmetics Prohibited Terms Network, further pointed out that merchants and brands mistakenly believe that changing shower gel to “soap +” can “circumvent” regulations. In reality, according to the product’s usage methods, areas of effect, intended purposes, and current regulations, the “liquid soap” and “soap liquid” products on the market do not meet the definition of “soap” and should all be considered cosmetics.
Furthermore, many industry professionals suggest, “Companies should immediately remove such products from the market and cease their non-compliant activities. They should also revise the product labels and names according to the definition of cosmetics and undergo cosmetic registration and appropriate evaluation of claimed effects to ensure compliance.”
Clearly, with the repeated crackdown on the irregularities of “liquid soap” this year, this gray area has drawn the attention of regulatory authorities. In order to avoid risks, companies involved in the production of “liquid soap” products undoubtedly need to take immediate action, comply with regulations, and make necessary adjustments to achieve stable development.
