Recently, the Guangzhou Municipal Market Supervision Bureau released the first batch of typical cases for the special action to strengthen and enhance drug safety. Two hair dye product manufacturers were cited as negative examples. Guangzhou Meidu Cosmetics Co., Ltd. (referred to as “Guangzhou Meidu”) was included on the list for producing unregistered Meidu hair dye and for having its products found to contain prohibited ingredients. In fact, the Guangzhou Municipality’s Huadu District Market Supervision Administration has requested the revocation of Guangzhou Meidu’s cosmetics production license.
Another hair dye product manufacturer, Guangzhou Jinghongda Fine Chemical Co., Ltd. (referred to as “Jinghongda”), was fined 166,000 yuan for producing and selling unregistered special cosmetics and providing false evidence materials. The legal representative of the company was also fined.
In commenting on the significance of these cases, the Municipal Market Supervision Bureau stated that the heavy penalties, revocation requests, and strong measures taken against individuals have effectively deterred illegal operators. In fact, there have been precedents of license revocations and business bans in the past for violations in the production of hair dye products. It can be said that the long-standing issues in the hair dye market need to be addressed.
Despite the request for license revocation, production is still ongoing
According to the National Enterprise Credit Information Publicity System, Guangzhou Meidu was established in 2004. Public records show that Meidu brand was founded by Guangzhou Meidu in 2007. It is a comprehensive enterprise engaged in the development, production, and sales of professional hair care products. Their product line mainly includes shampoo, conditioner, perm lotion, hair dye, and styling gel.
The case reveals that from October 20, 2022, to July 7, 2023, the Guangzhou Huadu Market Supervision Administration delivered nine non-compliant inspection reports to Guangzhou Meidu. Upon investigation, it was found that between April 2021 and November 2022, Guangzhou Meidu produced eight batches of Meidu hair dye that did not meet the technical requirements specified in the registered information, which constitutes unregistered special cosmetics. Additionally, one batch of their products was found to contain a prohibited ingredient, 2-chloro-p-phenylenediamine sulfate.
In accordance with the “Regulations on the Supervision and Administration of Cosmetics,” the Guangzhou Huadu Market Supervision Administration imposed administrative penalties on the company, including confiscation of the products involved, illegal gains, and a fine of 120,000 yuan. They also requested the Guangdong Provincial Drug Administration to revoke the company’s cosmetics production license.
The Municipal Market Supervision Bureau stated that the significance of this case lies in the fact that according to the “Regulations on the Supervision and Administration of Cosmetics,” special cosmetics require registration, and once registered, the formula of the product should not be changed arbitrarily. Any changes in the formula that result in a new product need to be re-registered. Furthermore, cosmetic ingredients and packaging materials in direct contact with cosmetics should meet mandatory national standards and technical specifications.
It is worth noting that after receiving administrative penalties for producing unregistered special cosmetics on October 25, 2022, Guangzhou Meidu once again had their product, Meidu MEIDU Hair Dye QZ-77, tested on November 21, 2022, and it was found to contain hair dye ingredients that were not indicated on the product label or in the registered information.
In response, the Guangzhou Huadu Market Supervision Administration conducted multiple rounds of on-site inspections, traced the production process, and cooperated with cross-regional investigations to lawfully establish the illegal production of substandard cosmetics. While imposing severe penalties, they also requested the revocation of the company’s cosmetics production license from the Guangdong Provincial Drug Administration.
According to the official website of the National Medical Products Administration, Guangzhou Meidu’s cosmetics production license was issued in July 2023 and is valid until April 2025. It is currently within the valid period.
Today, when CHAILEEDO attempted to contact Guangzhou Meidu, a company representative stated that hair dye products and other products are still in normal production.
In addition, according to the National Enterprise Credit Information Publicity System, Jinghongda was established in 2006. Public records indicate that Jinghongda mainly produces perm and hair dye products. It is worth noting that CHAILEEDO noticed that Jinghongda has been subjected to administrative penalties three times, with fines exceeding 360,000 yuan. The reasons for the penalties include producing cosmetics without a license or beyond the scope of the license and using illegal ingredients in the production of cosmetics. Furthermore, multiple batches of Jinghongda products were listed in the non-compliant cosmetics published by the national regulatory authorities.
Has been administratively penalized 9 times
Hot-selling products have sold over 3.79 million boxes
CHAILEEDO has learned that Guangzhou Meidu only has one store on 1688 and does not have a presence on other e-commerce platforms.
According to Guangzhou Meidu’s 1688 store, they are selling 76 products, including products for the head, feet, and face. The products are sold in regions such as Africa, Europe, South America, Southeast Asia, and Northeast Asia. The main downstream platforms include Amazon, eBay, Wish, and others.
Among them, the best-selling product is Meidu 30g bagged hair dye, priced at 1 yuan per bag, with a minimum order of 10 bags. Within 90 days, the sales have reached over 100,000 bags. The second-best-selling product is Meidu black hair dye that covers white hair. It is priced at 11 yuan for a 500ml bottle, with a minimum order of 3 boxes. The sales volume in 90 days has reached 91,000 boxes, and as of now, over 3.79 million boxes have been sold.
CHAILEEDO noticed that on 1688, Guangzhou Meidu is also recruiting deep cooperation partners. According to Guangzhou Meidu, “the factory provides multiple brands and can cooperate with flagship stores on platforms such as Taobao, JD.com, and Amazon through equity cooperation.”
According to the information on the National Medical Products Administration’s platform for the filing of general cosmetics, Guangzhou Meidu has filed a total of 80 products since 2015, including shampoo, hair masks, hair conditioners, face masks, body wash, and other categories. Most of these products are currently in the status of cancellation or revocation of filing. Additionally, CHAILEEDO noted that as of now, Guangzhou Meidu has obtained 49 cosmetic registration certificates, of which 14 cosmetic special certificates are in the “expired” state. In 2023, they have applied for 6 special cosmetic certificates, including Baoran hair dye cream and 5 different colors of Meidu hair dye cream.
However, according to the National Enterprise Credit Information Publicity System, Guangzhou Meidu has been administratively penalized 9 times, with a total fine exceeding 450,000 yuan, from October 2020 to September 2023. The main violations include producing special-purpose cosmetics without obtaining approval numbers, using prohibited ingredients in cosmetics, and using unapproved new cosmetic ingredients. They were also penalized for producing cosmetics without a license or exceeding the scope of the license and infringing on others’ registered trademark rights.
Furthermore, Guangzhou Meidu has been notified multiple times for product non-compliance in the sampling inspections carried out by the National Medical Products Administration. For example, on January 29 of this year, in the announcement regarding 70 batches of non-compliant cosmetics, Meidu’s 7 hair dye creams were found to have inconsistencies in ingredient comparison and undisclosed hair dye ingredients.
In response to this, industry insiders believe that Guangzhou Meidu has become a focus of regulatory authorities and a typical case due to its repeated violations and failure to reform.
A representative of a cosmetics raw material company told CHAILEEDO, “Hair dye has always been an area of strict regulation, and there tend to be more illegal activities. This company’s license revocation is due to multiple violations, combined with years of repeated offenses, so the regulatory authorities are bound to take strong measures.”
Hair dye category faces a major shake-up
With the development of the economy and an increased awareness of beauty and health, the market size of the beauty and hair industry continues to expand. Data shows that in 2020, the market size of China’s beauty and hair industry reached 368.5 billion yuan, with the hair dye market accounting for 18.2 billion yuan and showing an upward trend year by year.
However, the hair dye market has long been plagued by a mix of genuine and counterfeit products that freely circulate in the market. In the announcements of sampling inspections issued by the National Medical Products Administration and local medical supervision departments, hair dye products have always been a high-risk category for non-compliant cosmetics.
For example, on November 23 this year, the National Medical Products Administration issued a notice regarding 45 batches of non-compliant cosmetics, all of which were hair dye products. The non-compliance issues were related to labeling and some products were found to have excessive amounts of p-phenylenediamine. It is worth mentioning that many companies were not appearing on the list for the first time. For instance, products under Guangzhou Feike have repeatedly failed to meet the requirements in sampling inspections. On August 22 this year, the company had its cosmetics production license revoked and was banned from the industry for 10 years for producing unregistered hair dye products. The legal representative of the company was also banned for life.
Additionally, on September 15, Guangzhou Dunfu Cosmetics Co., Ltd., a cosmetics processing company, received the maximum penalty for producing hair dye products without a license. The company was banned from the industry for 10 years, and both the legal representative and the company executives were banned for life.
As a special category of cosmetics, hair dye products are subject to a registration system, requiring formula approval from regulatory authorities. The formulation is not allowed to be changed without authorization, and the manufacturer must label all ingredients on the product packaging. The regulations in this area are strict.
Regarding the persistent quality issues with hair dye products, an industry insider told CHAILEEDO that the main reason is the past illegal practice of using one formula for multiple purposes. Previously, the practice of using one formula for multiple purposes did not result in widespread penalties, or the cost of non-compliance was relatively low, leading companies to develop a mistaken belief that “if it’s not explicitly prohibited, it’s allowed.” Additionally, hair dye products often have a variety of colors, while special cosmetics approvals may only cover one specific color. To meet market demand for different colors of similar products, companies may adjust the formulation.
It is understood that the main active ingredient in hair dye cosmetics is hair dye, and the “Safety Technical Specification for Cosmetics” (2015 edition) includes 74 approved hair dye raw materials, such as p-phenylenediamine. Common hair perm agents like thioglycolic acid are listed in the restricted component list, with clear usage restrictions and provided testing methods for 32 raw materials.
It is worth mentioning that on August 8 this year, the official website of the National Medical Products Administration announced the revision of 21 items related to cosmetics. The revised regulations include the addition of testing methods for 15 hair dye raw materials, such as 2-amino-4-hydroxyethylaminoanisole sulfate. “This means that there are now a total of 47 hair dye materials that can be tested, and the proportion of hair dye products failing sampling inspections is expected to further increase,” said a senior industry engineer in the cosmetics field.
Overall, as the cosmetics safety regulatory system continues to improve and more testing methods are established, there are no blind spots. Cosmetics companies should strictly regulate themselves.
