• Certificate & Licenses required for making & selling homemade cosmetics on e-commerce

We are an e-commerce platform name Klaasik for homemade products by home based women. There are thousands of sellers across India on our platform who make cosmetics, skin & hair care products at home like shampoos, hair oils, moisturizing creams, lip balms, face scrubs and packs. These products have been liked by customers. Altogether we have sold uptil no 20000 products. 
I want to understand:
1) All these women sellers are making cosmetic products at home in very small scale without proper certificate/approvals of making cosmetic products. What are the minimum compliant & legal things required for women sellers for which they can make their respective product lines of cosmetics. 
2) What are the legal issues faced by an e-commerce platform for listing such products when the products & sellers don't have any license related to cosmetics. The sellers are from across India.
3) These women sellers does all the required packaging & labeling which is required according to the policy like ingredients, directions to use, etc. Still they require any certificate?
We have started in Oct 20 our website www.klaasik.com and are worried about listing of such sellers. Pls help
Asked 4 years ago in Business Law

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5 Answers

Sellers need to obtain licence from FDA( Food and Drugs Administration ) for hand made cosmetics . the said Licences have also to be approved by Central Licensing Approving Authority i.e. Drug Controller General of India.

2) the layout plan for manufacturing cosmetics has to be approved by the authorities

3)the plan should be as per the requirements prescribed for manufacturing premises in the Drugs and Cosmetics Act 1940

4) The plan is scrutinized by panel of officers as per the requirements of the Drugs and Cosmetics Act 1940.

5) If necessary the premises is inspected by the concerned Inspector before plan Approval.

6) Finally after scrutiny and compliance as per requirements of the Act the layout plan is approved and two copies are given to the Applicant.

7) they  would also need licence under shops and establishment act of your state

Ajay Sethi
Advocate, Mumbai
96986 Answers
7833 Consultations

Yes, you need to register all your products as per The Drugs and Cosmetics Act, 1940 and plus take the licence from FDA as well for online business.

Licence from FDA ( Food and Drugs Administration) for hand made cosmetics which has to be approved by Central Licensing Approving Authority.

The handmade category of cosmetics as per Drugs and Cosmetics Act 1940 and Rules 1945.

Handmade and factory made cosmetics manufactured need permission and licens from Drug Control And Environmental Regulations.

 

Ganesh Kadam
Advocate, Pune
12987 Answers
262 Consultations

1. You seem to have provided the online platform to sell the products of these women and you have to stake in the business of those women.

2. If that is so then you can only put a disclaimer as regards the quality of those products so that buyers purchase the products at their own peril and in case of any dispute you may not be brought into the imbroglio.

3. For proper disclaimer you get in touch with us in priavte.

Devajyoti Barman
Advocate, Kolkata
23231 Answers
514 Consultations

1. As per the definition of cosmetic under Sec. 3 (aaa) of Drugs and Cosmetics Act 1940 and Rules 1945, which includes any article which is intended to be rubbed, poured, sprinkle or sprayed on or has been introduced into, or otherwise applied to, human body or any part either for the purpose of cleansing, beautifying, promoting attractiveness or for altering the appearance.

The Drugs and Cosmetics Act 1940 and Rules 1945 in India regulate all the manufacturing process relating cosmetics and drugs and under which manufacturing of hand made cosmetics is covered.

2. 

As per the Drugs and Cosmetics Act and Rule, the Central Government and the State Government makes rule regarding issuance of licence to a person for manufacturing cosmetics. Basically it is the State Drug Authorities of respective States, who are authorized to issue manufacturing licenses.

A person applying for the license of manufacturing hand made soap or any other cosmetics should have passed intermediate exam with Chemistry as one of its subject or any examination which is recognised by the Licensing authority.

Apart from it to get a license it is required to hold a diploma in Pharmacy which should be certified and approved either under the Pharmacy Council of India under the Pharmacy Act, 1948 or under the Pharmacy Act, 1948

3. Drugs Controller General is appointed by the Central Government as a head of the Central Drug Standard Control Organization who is authorised to regulate the cosmetics and drugs in India.

the licencing authority also considers before approving the licence that whether the cosmetic is misbranded or is a spurious cosmetic.

Licence from FDA ( Food and Drugs Administration) for hand made cosmetics which has to be approved by Central Licensing Approving Authority

The necessary laws are Federal Food, Drug, and Cosmetic Act (FD&C Act) and the Fair Packaging and Labeling Act (FPLA).

 

T Kalaiselvan
Advocate, Vellore
87188 Answers
2342 Consultations

Dear ma'am,

 

The cosmetic products in India are regulated under the Drugs and Cosmetics Act 1940 and Rules 1945 and Labelling Declarations by the Bureau of Indian Standards (BIS). A license has to be obtained from a Licensing Authority appointed by the State Government to manufacture any of the cosmetics classified under Schedule M-II of the Act..

Please note that liability occurs when you are make adulterated, misbranded or spurious products. You must be very particular if your cosmetics are in compliance with the standard mentioned in the Act.  You have to get a certificate after the application is furnished in Form 31 along with a license fee and an inspection fee. The manufacturer has to ensure that the production is done in the presence of a competent and qualified technical staff. The Licensing Authority is required to order an inspection of the whole premises where the operations are to be carried out, before granting or refusing the license. The inspectors are appointed under the Act are required to submit a detailed report to the Licensing Authority which can then decide whether to grant the license or not.

If any of your costumer is dissatisfied with your products and files a consumer complaint against you, the fact that you did not even get the license to carry on this business will only weaken your case. Also, even though the sale takes place through the online mode, please note that as long as you are involved in the activity of making cosmetics, it will fall under this act.  Thank you.

Anik Miu
Advocate, Bangalore
10186 Answers
120 Consultations

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