Beauty owners beware: FDA globalization act of 2008
By Moji O | June 4, 2008
Got this email over the weekend from Donna Maria of Indie Beauty and felt it necessary to repost due to its impact on small beauty business owners:
I write to you with an update on a regulatory concern that threatens the Indie Beauty industry, and the action I would like to take.
First a bit of background.
Before 2000, the year I founded the Indie Beauty Network, I worked as an attorney for many years, mostly as an advocate for various companies before federal and state regulatory bodies. When I started making cosmetics of my own, and later selling them, I often pondered and appreciated the regulatory freedoms that participants in the cosmetics industry enjoyed.
Unlike other industries, cosmetics industry participants do not have to register their businesses or their manufacturing facilities with the federal government. Registration is voluntary, and estimates are that less than 1/3 of the operating cosmetics facilities in the US are registered under the FDA’s voluntary registration program. While a few states require facility registration, the vast majority do not. In addition, companies do not have to obtain state or federal pre-approval before selling cosmetics.
One of the reasons I started IBN is because I have a passion for cosmetics and beauty products. I also have a passion for you- the Indie Beauty business owners- who make and sell them. I have always felt strongly that, as the industry grew and flourished, increased regulatory oversight would follow.
Today, Congress is poised to give the Food & Drug Administration the ability to implement what I consider to be burdensome and costly regulations that go far beyond what is required for the agency to effectively perform its legislative mandate.
I formed IBN in part so that, when the time came, IBN members would have an advocate in the event this type of unfair regulation became a possibility. It seems as though that time has come.
Food and Drug Administration Globalization Act of 2008
The draft of the Food and Drug Administration Globalization Act of 2008 was announced late last month. The legislation is aimed at giving the FDA authority to promulgate new regulations that are supposed to protect consumers and also provide the funding the agency needs to enforce existing laws in a global market.
Since its announcement, several industry participants have testified before the House Committee on Energy and Commerce, Subcommittee on Health about the draft, including Stephen F. Sundlof, DVM, PhD, Director of the Center for Food Safety and Applied Nutrition at the Food and Drug Administration, and a representative of the Personal Care Products Council, formerly known as the Cosmetic, Toiletries & Fragrances Association.
You can read the full text of the draft legislation here. As you can see, the proposed legislation would, among other things:
1. Require all cosmetics companies serving American consumers to register annually with the FDA, and pay a registration fee of $2,000 per facility per year, and to list in its registration the cosmetics is manufactures, processes, packs or holds, and also, for manufacturers, to list all ingredients in each product contained in the registration listing.
2. Require all cosmetics companies to report to the FDA “serious adverse events” resulting from the use of the products.
3. Require all cosmetics companies to comply with the FDA’s Good Manufacturing Practices.
4. Require all cosmetics that import cosmetics to register annually with the FDA, and pay another registration fee to do so.
5. Give the FDA authority to levy substantial fines for violations of the new requirements.
The implications of passage of this draft legislation are obvious and far reaching, and should it become law, it will have a definitive and immediate effect. While I feel we must acknowledge the critical role of the FDA in protecting consumers from unsafe or misbranded cosmetics products, we also must ensure that they appreciate that imposition of registration fees, registration requirements and burdensome reporting requirements on small businesses will snuff out an entire segment of the cosmetics industry. It will also have the devastating effect of hampering the creativity and robust competition that consumers have come to expect and appreciate.
What I’d Like To Do On Your Behalf
I would like to prepare a position paper on behalf of the 700+ members of the Indie Beauty Network to will address the draft legislation and share IBN members’ perspective. Of course, I first need to know what your perspective is, so I have set up a forum for you to post your opinions. Please share your suggestions, opinions and questions there.
Please post your comments as soon as possible. Once they are reviewed, I will call a member-wide teleconference meeting to address our options so we can collectively decide what steps to take next.
I will also post this email message there, along with other updates from time to time. Please note that the forum is open to the public at this time, but any draft letters sent to any authority on this topic will be vetted only among IBN members in a private forum. Members of the public will not be able to see our draft letters, or the edits we make to them.
I look forward to hearing your thoughts and questions, and to working with you on these important matters.
Thank you,
Donna Maria Coles Johnson
Founder & President, The Indie Beauty Network
Selected Resources & Links:
Committee on Energy & Commerce Website
Discussion Draft Legislation
Testimony of Janet Woodcock, M.D., Director, Center for Drug Evaluation and Research
Testimony of Center for Science in the Public Interest
Topics: Congress, FDA, Indie Beauty, beauty, cosmetics industry, finance | 4 Comments »
Fun friday: the birthday edition
By Moji O | May 16, 2008
Today my younger brother (happy 23 Kun!) and I celebrate our birthdays- making us a year older and hopefully, wiser. As I prepare to blow out the candles, I figured why not ask for 31 wishes to go with my 31 licks (gentle, gentle). That’s the wishful thinking of an optimist.
(1) Instead of cake, I think I’ll share some delish Mrs. Beasley’s cupcakes with friends and family. (2) I’m not much of a movie goer but I can barely contain my excitement about next week’s release of Indiana Jones and the Kingdom of the Crystal Skull. I’ve had a crush on Harrison Ford since Raiders of the Lost Ark and I promised my gal pal Leslie weeks ago we would go. Hopefully, I’ll be able to (3) schedule some r&r time before then. As most of you know I’m moving to Missouri soon. Although the weather has been less than desirable this past year, I’m looking to soak up some sun, serenity and scenic sites (when I’m not frantically working of course). 
Speaking of traveling, an (4) airline ticket to Boston isn’t too much to ask for. My bags are packed! I fell in love with the city while visiting my brothers last year. I long for the cobblestone paved streets, richly detailed architectural buildings and preserved landmarks, bustling chaos and magnificent dim sum of Chinatown, and the amazing ocean views. Let’s not forget Boston Common and the Freedom Trail, which I must say, was worth squabbling with my sister over after we’d already took in the historic sights via bus tour. (Note to self: next time leave the pumps at home!) (5) Or I could go to the Big Apple and visit my dear friend Lindsay. 
Maybe she could work up some magic and set up a lunch date with designers (6) Isaac Mizrahi, (7) Cynthia Rowley, (8) Michelle Smith of Milly and (9) Lola Faturoti. And since this would be a meeting of great designers, I would (10) extend that invitation to Eric and Vivian of Blend Creations. If only Diane Kruger resided in NY instead of Paris, (11) I could ring her up and go raid her closet. I would also be inclined to (12) raid actress Ginnifer Goodwin’s as well. The Southern gal effortlessly transitions from cool and classic to quirky and cute.
Sorry People and TMZ we don’t think she looks like Katie Holmes. In fact, their only obvious connection is being engaged to Chris Klein. Well, that and this photo of Goodwin rocking an oddly familiar cut in 2004, years before Mrs. Cruise donned her signature chop. (Things that you go ummm, indeed.) Ok, so I might not get my Hollywood moment. I would be satisfied with a bouquet of flowers. Not any flowers mind you, but an (13) arrangement crafted by the Teng sisters who operate Mints Boutique in Alameda, CA.
Marsha has been asking me for years to come visit her in Encinitas. While my schedule is booked up, I wouldn’t mind (14) hearing of her adventures more. Just the other week, she sent me an email with her latest passion- hoop dancing with her pals at Hoop Nectar. Check out the video here. I immediately recognized her and easily singled out her voice among the cheers. Oh Marsha, Marsha, Marsha- what a great idea! I think I just might ask for a (15) hula hoop. 
Speaking of dancing, I’ve wanted to attending (16) Lollapalooza since my college. This August I might visit my sister in the Windy City and crash at her pad for a few days. Who could blame me for wanting to see (17) Radiohead (my all time favorite band), (18) Rage Against the Machine, (19) Kanye West, (20) Mark Ronson, (21) Perry Farrell, (22) Jamie Lidell, (23) Cat Power, (24) Duffy and (25) Saul Williams perform. My brother met Saul Williams years ago and got an autographed book for me. Nowadays I don’t make much time for reading. I hope to read at least two books this year. Based on recommendations, they would be (26) “Eat, Pray, Love” by Elizabeth Gilbert and (27) “The Innocent Man” by John Grisham. This summer, I (28) will dust the cobwebs away and continue working on a book I’ve been tolling away at for the past three years. With my last three wishes, I want (29) health and happiness for all my loved ones, (30) success to all the amazing designers and entrepreneurs I’ve meet and (31) knowledge to make me wiser as I get older.
Topics: fun friday | No Comments »
Boosting online traffic
By Moji O | May 15, 2008
While sales were normal at the begin of the month, you’ve noticed your business hit a slump. Not only is traffic incredibly slow, but most of the sales account for ‘last chance’ merchandise. Loyal customers who usually splurge a few hundred dollars at a time barely charge more than a bill’s worth. Whether or not this decline in consumer activity can be linked to the recession, there is light at the end of the tunnel.
In Fortune Small Business “Drive traffic to your website,” several suggestions include improving search optimization, participating in social networking and blogging. Here are a few more methods to contemplate:
~ Examine your website design. Does it reflect your demographics? For instance, if you have a mature clientele, your text size should be more legible than if your site catered to teen girls who prefer funky colors and fonts.
~ Set up a yearly advertising budget. Ask yourself what sites your customers likely visit. Inquiry about their availability and pricing. Once this information is gathered, formulate an advertising campaign for the upcoming year and begin booking spaces. Don’t be afraid to ask for a discount, especially if you’re willing to purchase several ads at one time.
~ Exchange links to increase your site’s popularity with search engines.
~ Ensure the consistency of your site’s navigation. This makes it easier for search engine robots to locate all pages.
~ Anaylze your page views. Are consumers entering your site from other sites? If so, which ones?
What is usually the busiest shopping day? Is there a valid explanation for this? Could it be perhaps that you usually upload new items at the beginning of the week?
What region(s) do your customers reside? Are your products/services more appealing to them based on elements like the weather or the environment?
~ What products/categories are shoppers most interested in? Be sure to rotate best-selling and new items on the home page.
~ Take advantage of cross-selling. If you run an online boutique, avoid cross-selling four similar shirts on a shirt product page. Instead, ensemble an outfit by coordinate bottoms and a few accessories.
~ Organize a sale schedule months in advance. Your drop in business shouldn’t be the reason you suddenly decide to have a sale. Mix up your promotions. A discount is great but if you offer the same discount repetitively, there’s no reason for your consumer to rush and purchase today. Alternate instant savings with contests and sale items. Throw in free samples, free shipping or the option of having an item wrapped for no extra charge. Customers love being rewarded and even more, love the word free. To determine the success of each promotion, track the outcome monthly to judge which methods work best.
Topics: SEO, ad campaign, advertising, blogging, finance, social networking, web design, website | No Comments »
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