Fast-moving consumer goods (FMCG) companies are asking for a separate law to govern beauty and personal care (BPC) products, saying current regulations under the Drugs and Cosmetics Act 1940 impede growth. At present, the making of soaps, skin care, hair care, oral care and cosmetic products, much like drugs, is regulated under a system of inspection and licensing by state licensing authorities.
Beauty majors such as Hindustan Unilever (HUL), L’Oreal, Procter & Gamble, Colgate-Palmolive, ITC and Marico, under the Indian Beauty and Hygiene Association (IBHA), an apex body, have pointed to high compliance levels, the need for approval for small changes and the focus on pre-market licensing versus post-market notification and surveillance for the need to separate cosmetics and drugs regulation.
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At a high-level round-table last week, convened by The Dialogue, a public policy think-tank, beauty firms along with industry bodies and stakeholders from the legal fraternity and civil society discussed regulatory approaches for the cosmetics sector.
While the government did set up a committee a few years ago to examine the eight-decade-old Drugs and Cosmetics Act, a draft Bill, the New Drugs, Medical Devices and Cosmetics Bill, 2022, was introduced. The amended Bill is yet to be passed in Parliament. But beauty firms have argued that the new Bill does not address its need for a separate regulation. Beauty firms have also pointed to the food sector where the Food Safety and Standards Act, 2006, replaced existing food laws that focused on prevention of adulteration to regulation based on safety and science-based standards.
“The cosmetics sector provides essential daily-use products at affordable prices. Considering the industry’s growing importance, it is prudent to consider a dedicated regulatory framework that does not govern drugs and cosmetics together,” Dev Bajpai, advisor and former whole-time director and chief legal officer at HUL, said.
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Amit Bhasin, chief legal officer at Marico, has pointed to a prolonged pre-market approval process and the challenges it poses to companies to improve scale and compete effectively in the marketplace.
“A modernised, industry-specific regulatory framework would not only accelerate product innovation and market entry but also create market opportunities for emerging businesses,”
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