Cosmetics trade organization criticizes FDA Globalization Act
Act claiming that the proposed legislation will cripple small
One of the key sticking points for these companies is the requirement to register products and ingredients annually with the FDA and stump up a significant sum of money for the privilege. Donna Marie Coles Johnson, the CEO of the Indie Beauty Network, said the legislation will "make it impossible for small and family-owned firms to compete or even start a new cosmetics business." Fees squeeze out small players In a video broadcast, Johnson said the draft FDA Globalization Act imposes fees of up to $12,000 a year just for the privilege of selling so much as a bar of soap or a quarter ounce tube of lip balm. Under the proposals, companies will have to comply with good manufacturing practices and report all anticipated and unanticipated adverse events. Johnson said once these administrative requirements are added up companies will lack the time and energy to bring new products to market. Competition and inovation put in jeapardy She said the legislation is so burdensome it could prevent new companies from entering the market to the detriment of enterprise and consumers. These fears were also expressed last month by some legislators at a hearing of the House Committee on Energy and Commerce on the FDA Globalization Act and its impact on cosmetic devices and personal care. Many republicans called for a careful balance to be reached between the maintenance of product safety and overburdening the industry with unnecessary regulation. Other industries have also expressed concern about the FDA Globalization Act. In April, the Grocery Manufacturers Association (GMA) criticized the proposals saying they would over burden manufacturers who are currently facing a crisis in food prices. "The user fees proposed in the draft are unfair food taxes imposed on food manufacturers that will only work to arbitrarily increase the cost of food for consumers at the worst time possible," said GMA senior vice president Bob Brackett. The Indie Beauty Network is preparing a petition to present to Congress with the aim of stopping the FDA Globalization Act in its tracks. The trade organization hopes to obtain 100,000 signatories for the petition, which also calls for meaningful discussion on how Congressional goals can be reached without enacting unfair laws that make it impossible for small businesses to survive.