Watching the Dominoes Fall - A Case Study in Preparedness for Increased Regulation in the Cosmetics Industry

Abstract

Recent developments in the EU regulatory environment for consumer products illustrate the need for in-house regulatory and legal professionals to embed themselves in the product development and regulatory processes of their business organizations. Regulatory changes in one jurisdiction most often will have global supply chain implications which, if not managed optimally, can cost businesses unnecessary amounts of time and money. Particularly for smaller businesses with a global reach, compliance with multiple and seemingly inconsistent regulatory requirements present a financial burden and the distraction of resources from new business growth. Moreover, a new regulatory regime in one jurisdiction may signal similar impending changes in other jurisdictions that are prudent to consider even before enactment. Using as an example EU Regulation No. 1223/2009 on cosmetic products, which has a compliance deadline of July 2013, valuable lessons can be learned concerning the development and implementation of a compliance strategy that minimizes the financial and manpower burden on the business by anticipating differing regulatory requirements in multiple jurisdictions.