EnterCo analyzes several typical cases of non-compliance in cosmetic production, business supervision and illegal advertising claims in the first half of 2024, including operating cosmetics without registration certificates, false labels, using prohibited ingredients, etc. By sharing the following cases, EnterCo aims to assist cosmetic manufacturers and operators avoid easy mistakes and comply with regulations efficiently.
Case 1: Fined ¥260,000 for operating unregistered and unrecorded cosmetics
Illegal products：***草本活肤霜（***Herbal Skin Cream）; ***强效祛斑霜***(Effective Anti-Blemish Cream)
Illegal situation: Producing and operating unregistered special cosmetics, unrecorded general cosmetics
The party purchased semi-finished cosmetics and sent them to the outer packaging bottle merchant, who then filled and labeled the outer packaging bottle and mailed it to the party. The total value of the special cosmetics in this case was 5,376 yuan, and the illegal income was 1,024 yuan; the total value of the general cosmetics was 69,051.2 yuan, and the illegal income was 10,662.4 yuan.
Penalties: Based on the Cosmetic Supervision and Administration Regulations, the company was ordered to correct the violation, confiscate the cosmetics involved and the illegal gains, and was fined RMB 257,153.6.
Case 2: False cosmetics labels
Illegal products：**美肤沐浴乳（玫瑰花香）(**Beauty Body Wash (Rose Fragrance))
Illegal situation: The Chinese labels are inconsistent with the actual packages and product filling information.
After investigation, the Chinese labels of the imported general cosmetics “**Beauty Body Wash (Rose Fragrance)” do not match the actual packaging and product filing information, which violated the regulations and earned illegal income ¥ 262.8.
Penalties: Based on the Cosmetic Supervision and Administration Regulations, the company is ordered to correct the violation, confiscate the illegal gains, and impose a fine of RMB 1,000.
Case 3: Without Chinese labels
Illegal products：***甲油胶 (***Nail polish)
Illegal situation: Without Chinese labels and some products beyond the expiration date
After investigation, it was found that the party placed cosmetics "*** nail polish" without Chinese labels in the business premises to provide nail art services, and the illegal income could not be calculated. In addition, some nail polishes had exceeded their expiration dates but were still placed in the store to provide services, and no illegal income was generated until the case was discovered. In addition, the party did not establish a system for implementing purchase inspection records.
Penalties: Based on the Cosmetic Supervision and Administration Regulations, confiscated illegal products, imposed a fine of 10,000 yuan.
「Case 4」Lack of purchase inspection record system
Illegal products：***
Illegal situation: Failure to establish and implement a purchase inspection record system and a product sales record system; selling counterfeit imported cosmetics
Upon investigation, it was found that the party sold the purchased 171,040 counterfeit products to franchisees at the purchase price, and the party's illegal business volume was 171,040 yuan, with no illegal income. Although the party provided cosmetics acceptance records, customs declaration forms and inspection and quarantine certificates, they could not be matched one-to-one with the counterfeit cosmetics involved in the case, so the party did not implement the purchase inspection record system.
Penalties: According to the Chinese Trademark Law and the Cosmetic Supervision and Administration Regulations, the company was ordered to stop the infringing activities and was fined a total of RMB 27,000.
「Case 5」Lack of symbol for children's cosmetics
Illegal products：**儿童牙膏（香橙香型）(**Children’s Toothpaste (Orange fragrance))
Illegal situation: The outer packaging of children's cosmetics does not have the children's cosmetics symbol.
During on-site inspection, it was found that the children's toothpaste was not labeled with the children's cosmetic symbol on the packaging, its sales amounted to 576 yuan in total.
Penalties: In accordance with the "Regulations on the Supervision and Administration of Children's Cosmetics" and the "Cosmetic Supervision and Administration Regulation", the company was ordered to correct the violation, confiscate the illegal gains and impose a fine of RMB 9,424.
Compliance guidelines: Cosmetic operation and supervision
1. A special cosmetic can be produced and imported only after registration in NMPA. The domestic general cosmetics shall be filed to the provincial and municipal governments where the filing person locate before selling them in market. The imported general cosmetics ought to be filed to NMPA before importing.
2. The labels of cosmetics shall comply with relevant laws, administrative regulations and mandatory national standards, and the content shall be true, complete and accurate. Imported cosmetics are allowed to directly use or affixed a Chinese label; the content added should be the same as the original packages.
3. Cosmetics manufacturers and operators shall store and transport cosmetics in accordance with the provisions of relevant laws and regulations and the requirements of cosmetics labeling, and regularly inspect and promptly handle cosmetics that have deteriorated or exceeded their use period.
4. Cosmetics operators should establish and implement a purchase inspection record system, check the supplier's market entity registration certificate, cosmetics registration or filing status, and product factory inspection certificate, and truthfully record and preserve relevant credentials.
5. Children's cosmetics should be marked with the children's cosmetics symbol prescribed by the NMPA on the display surface of the sales packaging.
「Case 6」Fined 100,000 yuan for producing and selling cosmetics in violation of Safety and Technical Standard for Cosmetics
Illegal products：**牛奶沐浴液(**Milk Body Wash)
Illegal situation: Producing and selling cosmetics not conforming to the Safety and Technical Standard for Cosmetics
After investigation, it was found that the party produced 20,000 bags of ** milk bath gel, sold 19,994 bags at RMB 1 per bag, and later recalled 17,171 bags. The above products did not comply with the " Safety and Technical Standard for Cosmetics".
Penalties: Based on the Cosmetic Supervision and Administration Regulations, the illegal gains of RMB 2,823 were confiscated, the goods were confiscated and a fine of RMB 100,000, which is five times the value of the goods, was imposed.
「Case 7」Banned from the industry for life due to producing cosmetics with prohibited ingredients
Illegal products：**婴亲霜(**Baby Cream); ***臻护霜（儿童型）(***Precious Care Cream (Kids ))
Illegal situation: Producing cosmetics using prohibited ingredients
The children's cosmetics “**Baby Cream” and “***Precious Care Cream ( Kids )” both contained tacrolimus, a prohibited ingredient in cosmetics. The total illegal income for the above products was 15,500 yuan, and their value amounted to 25,577.7 yuan.
Penalties: Based on the Cosmetic Supervision and Administration Regulations, the company was required to stop operating cosmetics for 6 months, and its cosmetic production license was revoked, and not process its cosmetics registration application or accept its cosmetics administrative license application within 10 years.
In addition, the legal representative of the party concerned, Fang ×, and the person in charge of quality and safety, Zhou ×, were banned from engaging in cosmetics production and operation activities for life, and Zhou × was fined 23,386.5 yuan.
「Case 8」Banned from the industry for life due to producing unregistered special cosmetics
Illegal products：**染发膏（紫红色）(**Hair Color Cream (Fuchsia))
Illegal situation: Producing unregistered special cosmetics
“** Hair Color Cream (Fuchsia)” is an unregistered special cosmetics, which was sold out, with an illegal income of 1313.2 yuan.
Penalties: Based on the Cosmetic Supervision and Administration Regulations, the company was required to stop operating cosmetics for 6 months, and its cosmetic production license was revoked, and not process its cosmetics registration application or accept its cosmetics administrative license application within 10 years.
Furthermore, the legal representative of the company, Chen ××, were banned for life from engaging in cosmetics production and operation, and fined him 152556.62 yuan.
「Case 9」Serious deficiencies in the quality management system for
production
Illegal products：***尊宠养护套臻淳霜(*** Skin Care Cream); ***尊宠养护套臻淳油(*** Skin Care Oil)
Illegal situation: Failure to organize production in accordance with the requirements of the cosmetics production quality management regulations
Upon investigation, it was found that during the process of entrusting the production of *** Skin Care Cream and *** Skin Care Oil, the entrusted enterprise produced no relevant records of production and inspection, the party did not review and record the production and quality activities of the products, and did not implement the supervision system for the production activities of the entrusted party.
Penalties: Based on the Cosmetic Supervision and Administration Regulations, confiscated illegal gains and imposed a fine of 23,000 yuan。
Compliance Guidelines: Cosmetic production
1. Manufacturers shall produce cosmetics in accordance with national standards, technical standards or the technical requirements stated in the cosmetics registration or filing materials and shall not make any changes without authorization.
2. Cosmetics companies should avoid using prohibited ingredient in cosmetics production, new raw materials that should be registered but have not been registered, illegally adding substances that may harm human health to cosmetics, or using expired, discarded, or recycled cosmetics or raw materials to produce cosmetics.
3. To ensure the quality and safety of cosmetics, cosmetic registrants, filing persons, and entrusted production enterprises shall organize the production of cosmetics in accordance with the requirements of the cosmetics production quality management specifications formulated by the NMPA, establish a cosmetics production quality management system, and establish and implement management systems such as supplier selection, raw material acceptance, production process and quality control, equipment management, product inspection and sample retention.
「Case 10」Medical efficacy implied in advertisements
Illegal products：***系列深蓝|湿疹霜|沐浴露|身体乳(***Dark Blue Series| Eczema Cream| Body Wash| Body Lotion)
Illegal situation: Medical efficacy implied in advertisements
The product, as an imported general cosmetics, was advertised as “eczema” and “suitable for sensitive skin and infants, anti-allergy care brand” on the online platform, but the company was not able to provide proof for medical effects.
Penalties: According to the Cosmetic Supervision and Administration Regulations and the Chinese Advertising Regulations, fined 8,000 yuan.
Compliance Guidelines: Cosmetic advertising claims
1. Cosmetics are prohibited from explicitly or implicitly claiming to have medical effects.
Article 17 of the Advertising Law of the People's Republic of China states: "Except for advertisements for medical treatment, drugs, and medical devices, any other advertisements are prohibited from involving disease treatment functions, and medical terms or terms that may easily confuse the promoted products with drugs or medical devices are not allowed to be used."
If you have any questions related to cosmetic filing and registration, please contact us via info@enter-co.com.
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