Since the implementation of the Regulations on the Supervision and Administration of Cosmetics, many beauty companies, including, among others, international giants and well-known brands, have been penalized one after another, in the areas of “advertising” and “production”.

After the Regulations on the Supervision and Administration of Cosmetics officially took effect on January 1, 2021, the cosmetics industry entered a new era of stricter regulation. The implementation of the new regulations have brought intensified penalties, clearer responsibilities, and further improved regulation. With the implementation of the new regulations and the tightening regulation under the Advertising Law, many well-known beauty companies were penalized one after another this year, and "false advertising" has become a new focus of regulation.

False advertising can temporarily draw the attention of consumers and increase sales for a brand, but inaccurate representations will eventually be revealed under stricter regulation. Blindly pursuing immediate results will damage the brands image that has been built with hard work for many years. Once consumers loose trust in the brands it will be hard to win them back.

Amid increasingly strict state supervision and standardized regulations, which mistakes must beauty brands and operators not make? 

01

Vague description of necessary information

When advertising products, beauty companies should accurately describe the performance, function, place of origin, purpose, quality, etc. of products. Vague advertising may cause misunderstanding for consumers. Many companies deliberately use ambiguous wording to guide consumers to have a wrong perception of products, infringing upon consumers' rights to know.

 

1、DHC

The administrative penalty decision dated June 1 shows that Shanghai DHC was fined RMB 50,000 and ordered to stop publishing advertisements for the inaccurate, unclear or vague description of functions of the products in its advertisements. DHC was also fined RMB 300,000 and ordered to stop publishing advertisements and eliminate the effects within the corresponding scope. The total amount of fines was RMB 350,000 .

 

2. Lily&Beauty

On July 27, Lily&Beauty (Shanghai) E-commerce Co., Ltd. was fined RMB 40,000 by Shanghai Xuhui District Administration for Market Regulation for inaccurate, unclear or vague description of product performance, purpose or usage, quality, ingredients, price, effective period, or service content, quality, price, and commitment to services.

 

3. Lin Qingxuan 

On August 6, Shanghai Linqingxuan Biotechnology Co., Ltd. was fined RMB 50,000 by Shanghai Pudong Administration for Market Regulation for inaccurate, unclear or vague description of the product performance, function, origin, usage, quality, or service content, provision, form, price and commitment to service under the Decision (HSJPC [2021] No.152021000713). 

 

According to the pdocumented penalty decision, the relevant products ingredients contain "Qingxuan extract" (i.e. extracts of camellia seed oil, camellia flower and camellia leaf). According to the efficacy test report provided by the party concerned, under certain conditions, Qingxuan extract has skin barrier repairing properties. Skin barrier refers to the outermost epidermal part of the skin, which cannot be completely equivalent to the skin. The party concerned had an inaccurate, unclear or vague description of the function of the above two products.

02

Advertising of unprovable efficacy

According to Article 11 of the Advertisement Law, any data, statistics, research results, excerpts, quotations, and other citations used in an advertisement shall be authentic and accurate, with the source indicated. If the citation is subject to a scope of application or a valid period, the scope of application or valid period shall be clearly indicated.

The advertising of products by beauty brands should be concrete. The advertising of unprovable efficacy is a deception to consumers. Any claim should be supported by rigorous textual research and data.

 

1. Estee Lauder 

On June 16, Estee Lauder (Shanghai) Trading Co., Ltd. was fined RMB 400,000 and ordered to stop illegal act for false or misleading commercial advertising by Shanghai Jiang’an District Administration for Market Regulation.

According to the administrative penalty decision, from February 2017 to March 2018, the party concerned sold "Clinique Fresh 10% Vitamin C Essence VC Ampoule Facial Serum" online at the "Clinique Official Flagship Store" on Tmall. The "Product Details" page used advertising slogans such as "living vitamin c fresh antioxidant, activating young, brightening skin and fining skin within 7 days, improving acne marks and reducing fine wrinkles within 4 weeks, repairing skin and enhancing skin self-healing ability within4 weeks " and "Using Clinique Fresh Antioxidant Vitamin C Essence to Enhance Skin Antioxidant Self-healing Ability".

 

 

It was found that the party concerned was unable to provide the relevant evidence about its claimed efficacy that Clinique Fresh Vitamin C Repair Serum can improving acne marks within 4 weeks and enhancing skin self-healing ability within 12 weeks.

 

2. Sephora

On June 1, Sephora (Shanghai) Cosmetics Sales Co., Ltd. was fined RMB 400,000 and ordered to stop illegal act by Shanghai Jiang’an District Administration for Market Regulation for false or misleading commercial advertising.

  

Sephora was placed on file for investigation for alleged violation of Item 3, Paragraph 1 of Article 9 of the Advertising Law of the People's Republic of China due to the posting of the advertising slogans "Top lip-charming equipment" on the "BOBBI BROWN" counters in Sephora stores.

In addition, when selling a product called "For Beloved One Brightening Vitamin C Mask,Buy One Get One Free Set" at No. 1 store "Sephora's Official Flagship Store" operated by Sephora, Sephora used the word "whitening" as a slogan in the "Specifications & Packaging - Efficacy" section. However, Sephora was unable to provide the relevant experiment report on its claimed "whitening efficacy".

 

3. Coty

From February 28, 2021 to April 27, 2021, Coty (Shanghai) indicated "Efficacy: Repair Damage and Soothe Skin" in the product details on the product page of "Philosophy Time in a Bottle skin repair serum 40ml, Red Ampoule" sold in the Tmall store. However, Coty (Shanghai) failed to provide the advertising basis for the product's efficacy of "repairing damage".

 

On August 12, Coty (Shanghai) was ordered to make correction and was fined RMB 30,000 for violating Paragraph 1 of Article 20 of the Law of the People's Republic of China on the Protection of Consumer Rights and interests: "Business operators shall provide consumers with truthful and full information concerning the quality, performance, purpose and term of validity of the products or services they provide, and shall not make any false and misleading statements.”Business operators activities in this instance constituted an act of making false or misleading statements of products or services.

4. Li Jiaqi

One of the live streaming anchors in Li Jiaqi's company, Meione (Shanghai) Network Technology Co., Ltd., promoted the household appliance product "Tripollar Stopvx Beauty Apparatus" through the company’s live streaming platform on November 10, 2020. During the live streaming, the anchor used words such as "activating collagen in the whole face, firming skin, and reducing fine wrinkles, with huge and obvious effect", "using for one month is equivalent to a thermage, the effect is really huge and amazing." 

 

On August 14, Shanghai Changning District Administration for Market Regulation issued an administrative penalty decision to Meione. According to the decision, Meione was ordered to stop the illegal act and finedRMB 300,000 or false or misleading commercial advertising.

03

Illegal advertising of the efficacy of 

special-purpose cosmetics

Article 4 of the Regulations on the Supervision and Administration of Cosmetics stipulates that the State implements classified management of cosmetics and raw materials of cosmetics according to the degree of risk. Cosmetics are divided into special cosmetics and general cosmetics. The State implements registration-based management of special cosmetics and filing-based management of general cosmetics.

Only registered special cosmetics can be advertised to have special efficacy such as "whitening," "sun protection," and "anti-hair loss". Many companies claim that their unregistered general cosmetics have special efficacy, which are in serious violation of the relevant regulations.

1. Beijing Secoo

On August 20, Beijing Secoo Trading Co., Ltd. was fined RMB 800,000 by Beijing Xicheng District Administration for Market Regulation for violation of the relevant provisions of the Advertising Law, under the Decision (JXSJFZ [2021] No.747). 

The party concerned released a product called "Paul Mitchell Tea Tree Shampoo Set" on the "Secoo Luxury" mobile software. The product details page indicated "reducing hair loss" which, however, was the efficacy of special-purpose cosmetics. The party concerned constituted an act to claim that non-special-purpose cosmetics have the efficacy of special-purpose cosmetics.

 

2. Tongdao Uncle 

Shenzhen Tongdao Uncle Culture Communication Co., Ltd. was fined RMB 3,000 by Shenzhen Nanshan District Administration for Market Regulation for using advertising words such as "whitening" and "lowering blood pressure" for general cosmetics sold in its store on the applet "Tongdao Uncle Buyer Mall".

 

04

False endorsement

The professional addition of college and university endorsement fosters close relations  between cosmetics enterprises and Colleges and Universities and scientific research institutions, which, however, gives some unscrupulous enterprises an opportunity in the market. In the background of pursuing professional endorsement, many enterprises lack patience and responsibility, and pursue non-evidence-based or even false endorsement without paying adequate cost and exhibiting professionalism.

There is nothing wrong with cooperating with Colleges and Universities to enhance corporate endorsement, but the lack of actual scientific research, creation of gimmicks and false advertising also reveal the impetuousness of some enterprises.

 

On November 6, during the on-site inspection of the premises of Guangzhou Jiukoushan Technology Co., Ltd., Guangzhou Baiyun District Administration for Market Regulation found that the packaging box of cosmetic "Beifu Whitening and Nourishing Body Lotion" sold by the company was marked with the words "Technical Support from the College of Chemical Engineering and Technology of Sun Yat-sen University". Because the company's personnel could not provide evidential materials on the relevant technical support from Sun Yat-sen University, the company's act was suspected of violating the relevant provisions of the Regulations on the Supervision and Administration of Cosmetics.

The Baiyun District Administration for Market Regulation issued a Notice of Administrative Penalty to Guangzhou Jiukoushan Technology Co., Ltd., under which the company revenue was confiscated for the illegal income of RMB 2,100, and 466 bottles of "Beifu Whitening and Nourishing Body Lotion", and imposed an administrative fine of RMB 104,160.

05

Production non-compliance

The Safety and Technical Standards for Cosmetics stipulate the safety technical requirements for cosmetics, including general requirements, requirements for prohibited and restricted components, requirements for permitted components and inspection and evaluation methods. Enterprises shall conduct production activities in strict accordance with the specifications. The phenomenon of data fraud, using inferior materials and turning out sub-standard products will not only harm consumers' rights and interests, but also seriously damage brand image.

 

1. Tianzhili 

Guangzhou Tianzhili Biotechnology Co., Ltd. violated Article 8 of the Regulations on the Hygiene Supervision over Cosmetics reading as "The materials and additives needed in the making of cosmetics and the immediate containers and packing materials of cosmetics must meet the State hygiene standards". The company’s act constituted an illegal act of producing cosmetics that does not meet the national Cosmetic Hygiene Standards, and the company revenue was confiscated by Guangzhou Baiyun District Administration for Market Regulation for the illegal income of RMB 3,094.14 and fined RMB 9,282.42 , totaling RMB 12,376.56.

2. Mentholatum

On November 26, Mentholatum (China) Pharmaceutical Co., Ltd. was subject to a new administrative penalty. It was punished by Zhongshan Administration for Market Regulation for its production of men's lip balm that did not meet the national Cosmetic Hygiene Standards, with illegal income of RMB 495,700 and 1,427 units of products confiscated. 

 

Men's lip balm SPF 15 Cool Aqua produced by Mentholatum was judged to be unqualified since the ethylhexyl salicylate content was 5.13% according to the sampling testing result and 5.22% according to re-testing result, which did not meet the requirements of the Safety and Technical Standards for Cosmetics (2015).

3. Paristy

On December 9, the official website of the Shanghai Drug Administration announced that Shanghai Paristy Daily Chemicals Co., Ltd. was fined RMB 74,088 by Shanghai Minhang District Administration for Market Regulation for alleged production of cosmetics that did not meet the technical requirements set out in the filing materials. The company was suspected of producing and operating cosmetics that did not meet the mandatory national standards, technical specifications or technical requirements set out in the cosmetics registration or filing materials.

06

Adding prohibited ingredients

Product safety is the cornerstone of enterprises’ existence and is related to the health of consumers. This year, the National Medical Products Administration has announced a number of prohibited raw materials. Enterprises must actively respond to the policy, make strict self-inspections, and must not add any prohibited ingredients.

 

1. Tengyue

On May 24, according to the information disclosure form on administrative penalties released by the Guangdong Provincial Drug Administration, Zhang XX, the quality director of Guangzhou Tengyue Biotechnology Co., Ltd., was fined RMB 20,000 for intentionally providing the Guangdong Provincial Medical Products Administration with false product sales prices and false product recall documents and evidence.

 

 

Two batches of "ABaby Parent Special Baby Care Cream" and one batch of "Baby Parent Baby Skin Care Cream" produced by Guangzhou Tengyue Biotechnology Co., Ltd. were found, after inspection, to contain diphenhydramine and clotrimazole, both of which were prohibited substances for cosmetics. One batch of "Honeysuckle Bud Baby Diaper Care Cream" produced by the company was found, after inspection, to contain miconazole, a prohibited substance for cosmetics. The above products produced by the party concerned did not comply with the provisions of the Safety and Technical Standards for Cosmetics. According to the regulations, the company's cosmetic production license was revoked.

2. Colgate

On December 3, according to the public information of the administrative penalty case of Luogang Customs Office (JFZ (2021) No. 0142), Colgate-Palmolive (China) Co., Ltd. was placed on file for unauthorized use of illegally imported clary sage oil. According to Article 43 of the Implementing Regulations of the Law of the People's Republic of China on Imported and Exported Commodities Inspection and Item 1 of Article 18 of the Implementing Regulations of the Customs on Administrative Penalties, Colgate's act constituted an illegal act. In addition, according to Item 1 of Article 18 of the Implementing Regulations of the Customs on Administrative Penalties, Colgate was fined CRMB 13,039 on November 26, 2021.

 

 

Clary sage oil is an essential oil extracted from clary sage. It is often used as an ingredient in lotions or creams to soothe facial pores, but it can be harmful if used in large quantities.

Operating a cosmetics brand well is a long journey, but "collapse" can often occurjust in an instant. With the tightening of regulations and consumers being more rational and mature, we wish that in the upcoming 2022, beauty brands, manufacturers, retail brands can value more their reputations and not abuse the trust of consumers!