Aug 09 2008

READ THIS IMPORTANT MESSAGE IF YOU ARE A SMALL BUSINESS
Finding appropriate packaging is not the only challenge to
launching a product line. If you’re a cosmetics company these
days, you must be aware of a draft law now pending in the House
Energy & Commerce Committee. The FDA Globalization Act of 2008
would change the way cosmetics are regulated in the US. If the
draft law is enacted in its current form, it would literally kill
of small and woman-owned cosmetics businesses.
Among the provisions in the draft legislation are:
- annual registration fees of up to $12,000 for all cosmetics
companies, even if all you manufacture is a single bar of soap
and even if you are a very small company - stringent and burdensome reporting requirements that would make
it impossible to run a small business - requirements for compliance with one-size-fits-all
manufacturing guidelines that small businesses cannot possibly
comply with
The provisions represent onerous barriers to entry, will stomp
out competition and minimize consumers choices when it comes to
their personal care products. It will also decimate businesses
that women have started and run successfully because the playing
field, at least up to now, has been a level one. This legislation
would change all of that.
The Indie Beauty Network (IBN) is leading the charge to oppose
the draft law. In meetings earlier this week at the Food and Drug
Administration and on Capitol Hill, IBN’s president and several
members put the small business position forward in the hopes of
convincing legislators to amend the draft law to make sure that
small businesses are not decimated by the law.
IBN’s blog post with video and Petition to oppose the law is
here, and you can sign the Petition by leaving your comment,
city, state and zip at the blog:
http://www.indiebusinessblog.com/indie_business/FDA_globalization
n_act_of_2008/index.html
Our July 24, 2008, IBN sent a letter to the Congress persons on
the House Energy & Commerce Committee:
http://www.indiebeauty.com/media/index.asp
At a time when small businesses are most vulnerable, especially
those run by women and families who are fighting to stay off
unemployment lines, IBN and many others believe that this
legislation is the wrong policy and the wrong law at the wrong
time.
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