The cosmetics industry adds new names to the list of prohibited practitioners.
Recently, the National Medical Products Administration announced four typical cases of cosmetics. In the case of QINCCI Cosmetics Co., Ltd. in Yulin City, Guangxi Province (referred to as “QINCCI Company”), which used prohibited ingredients to produce cosmetics, the legal representative of the company, Mr. Wang, was fined and banned from the industry permanently.
It is understood that the case has been prosecuted by the procuratorial organ for the crime of producing and selling counterfeit products, and the court is currently conducting further trial. It is worth mentioning that this is also the first publicly announced case of a lifetime ban in the cosmetics industry by the National Medical Products Administration this year.
QINCCI Company uses prohibited ingredients, and the legal representative is banned permanently
According to the National Enterprise Credit Information Publicity System, QINCCI Company was established in May 2012, with Mr. Wang as the legal representative. The company’s business scope includes the sale of cosmetics, skincare products, daily necessities, Class I medical devices, as well as new material technology development and promotion services.
According to the information released by the National Medical Products Administration, in July 2023, the Market Supervision Administration of Yulin City, Guangxi Zhuang Autonomous Region, conducted an investigation into QINCCI Company based on clues discovered through national cosmetics safety risk monitoring. It was found that the company was using prohibited ingredients for the production of cosmetics. Such actions violated Article 30, Paragraph 1 of the “Regulations on the Supervision and Administration of Cosmetics” and are suspected of constituting a crime.
The information further states, “In accordance with Article 59, Paragraph 3, and other provisions of the ‘Regulations on the Supervision and Administration of Cosmetics,’ the Market Supervision Administration of Yulin City has transferred the case to the public security organ in accordance with the law and imposed administrative penalties on the legal representative of the company, Mr. Wang, prohibiting him from engaging in the production and business activities of cosmetics permanently. Currently, the case has been prosecuted by the procuratorial organ for the crime of producing and selling counterfeit products, and the court is undergoing further trial.”
According to the administrative penalty information disclosed on the official website of the Market Supervision Administration of Yulin City in November of last year, in the “2023 Administrative Penalty Case Information Disclosure Table (Offender: Mr. Wang),” the main illegal act committed by QINCCI Company was the illegal addition of prohibited substances in the QINCCI Bai Cao Shuang cream, which constitutes an illegal act of adding substances that may harm human health and do not conform to mandatory technical standards in cosmetics. The legal representative of the company, Mr. Wang, bears the main responsibility and is punished with a permanent ban.
In fact, this is not the first time that QINCCI Company has been fined for using prohibited ingredients in cosmetics.
According to the administrative penalty decision disclosed by the Market Supervision Administration of Yuzhou District, in 2021, out of the 6 boxes of “QINCCI” Bai Cao Shuang cream inspected, the inspection result for ciprofloxacin was 1291ug/g, which does not meet the requirements of the “Cosmetic Safety Technical Specifications” (2015 edition). The inspection conclusion was deemed as unqualified, which constitutes the act of producing and selling cosmetics that do not comply with mandatory national standards and technical specifications. In response, the administration determined that QINCCI Company violated relevant provisions of the “Regulations on the Supervision and Administration of Cosmetics” and ordered the company to immediately rectify the illegal behavior and imposed a fine of 20,200 yuan.
It is worth mentioning that on September 19, 2022, QINCCI Company had already undergone the “deregistration filing” at the Market Supervision Bureau of Yuzhou District in Yulin City. The reason for deregistration was the dissolution resolution. Today, CHAILEEDO attempted to call QINCCI Company for more details, but after dialing the contact number provided in the company’s 2023 report, it was found to be invalid.
QINCCI Company’s canceled products are still flooding the internet
Meanwhile, using a cosmetics regulatory app, CHAILEEDO searched for the keyword “QINCCI” and found 40 registered information records for ordinary cosmetics, including baby nourishing cream, lip balm, hand sanitizer, body lotion, and other categories. Currently, all of these products are either canceled or have had their registrations revoked.
Among them, three products are registered under the name “QINCCI Bai Cao Shuang,” with registration numbers Gui G Zhuang Wang Bei Zi 2015000446, Gui G Zhuang Wang Bei Zi 2017000653, and Gui G Zhuang Wang Bei Zi 2019000954, respectively. The first two products are registered by QINCCI Company, while the third product is registered and produced by QINCCI Company.
From the flat and three-dimensional packaging images of these products, it can be observed that the packaging for all three products is almost identical. CHAILEEDO noticed that the packaging of these three products states “herbal plant extract formula developed for delicate skin” and under the “applicable population” section, it is mentioned that “people of all ages can use it, specifically developed for delicate skin.”
It is worth noting that, according to CHAILEEDO’s investigation, many products labeled as “QINCCI Bai Cao Shuang” are still being sold on major e-commerce platforms, and many of these products have packaging images in their product details pages that are nearly identical to the packaging of the three registered products mentioned above.
One of the best-selling “QINCCI Bai Cao Shuang” products on a certain e-commerce platform has already sold over 10,000 units. The product details page displays the registration number as Yue G Zhuang Wang Bei Zi 2017150339. CHAILEEDO searched on the official website of the National Medical Products Administration and found that the corresponding product name for this registration number is Yaqi Hoho Ba Oil Baby Moisturizing Lotion, registered by Zhuhai Yasi Cell Medical Technology Co., Ltd.
It is worth mentioning that when CHAILEEDO clicked on “Buy Now” for this product on the e-commerce platform, two products appeared: Qianzhi Dao Cao Qinfu Cream (registered) and Yiqinfang Qianzhi Bai Cao Shuang Cream (canceled). Both products claim to have multiple reparative effects on children’s skin problems, specifically targeting moisture and itching, suitable for infants and young children.
When CHAILEEDO searched for “Qianzhi Dao Cao Qinfu Cream” using the cosmetics regulatory app, it showed that this product was canceled on July 13, 2023. In response, CHAILEEDO consulted the customer service of the store and was told that “Qianzhi Dao Cao Qinfu Cream” is no longer being produced, and the products currently being sold were produced around June of last year, not after the cancellation.
“Perhaps this product is using the registration certificate number of Zhuhai Yasi Cell Medical Technology Co., Ltd.’s product to engage in activities explicitly prohibited by regulations.” A senior professional in the cosmetics industry pointed out that not only are they confusing consumers with the names “Qianzhi Dao Cao” and “QINCCI,” but the canceled product only has an antibacterial effect and does not possess the claimed reparative and eczema treatment effects.
“In reality, after a company is canceled or revoked, some non-compliant products may not be completely recalled. In the regulatory process, enforcement agencies can start by recalling all products using the product as the entry point to address the root cause of product safety risks.” The professional added further.
Prohibition means elimination from the industry
According to incomplete statistics compiled by CHAILEEDO, since the implementation of the new regulations in 2021, there have been at least 19 cases of prohibition in the industry, involving entities, legal representatives, company shareholders, and production managers.
Among them, there have been seven cases of prohibition due to the addition of prohibited substances in children’s cosmetics. For example, in September 2021, Xiamen Xiangpuer Daily Chemical Co., Ltd. was fined approximately 4.09 million yuan for producing children’s cosmetics without a license. The legal representative of the company also received a fine of 158,400 yuan and a lifetime prohibition.
Similarly, in December 2021, Hebei Kangzheng Pharmaceutical Co., Ltd. had its cosmetics production license revoked and cosmetic filings canceled. They were also prohibited from filing or applying for administrative permits for cosmetics for 10 years. This punishment was imposed because they added the prohibited substance Benzylidene Dimethoxydimethylindanone (BEMT) in their products, including Xingpu Repair Cream (for children), Yuzhijia Xingma Repair Cream (for children), and Caoben Beibei Herbal Repair Cream. The legal representative of the company received a lifetime prohibition.
Regarding the phenomenon of cosmetic companies repeatedly adding prohibited ingredients to infant and child cosmetics, Zhang Taijun, the R&D director of Quanzhi Meifu Biotechnology Research Institute, stated, “Precise regulation is taking effect, and limited regulatory resources are being concentrated on high-risk products, effectively curbing illegal activities.”
Shi Changsong, the R&D director of Guangdong Baiya Cosmetics Co., Ltd., bluntly stated, “Children’s cosmetics are high-risk products in terms of safety. These companies that have been prohibited from the industry knowingly added prohibited substances to children’s cosmetics. Only by imposing prohibitions can we purify the entire cosmetics industry.”
From the subsequent status of companies that have been prohibited, it can be seen that being prohibited from the industry essentially means being eliminated. According to CHAILEEDO’s incomplete analysis, these prohibited companies generally face operational abnormalities, restricted business activities, becoming judgment debtors, deregistration, tax arrears, and legal entanglements.
In response to this, the head of a cosmetics brand in Hangzhou believes, “Regulations are becoming stricter, and the requirements for practitioners are also increasing. When a company is prohibited, it is actually paying the price for its previous illegal activities, which plays a role in rectifying the industry. In the future, the entry threshold for the cosmetics industry will be higher, and it will eliminate a group of bad actors.”
Zhang Taijun stated, “This indicates that the prohibition punishment has been effective, exerting a deterrent effect on the punished parties and truly contributing to elimination, cleaning, and purification.”
With stricter regulations, “prohibition punishment” has become normalized. For children’s cosmetics, “compliance” and “safety” have always been their lifelines. As regulation continues to tighten, practitioners need to prioritize safety and ensure compliance.
