House Judiciary Committee Hearing Shines Light on Dangers of Counterfeit Products

FOR IMMEDIATE RELEASE

Contacts:  

Lisa Powers, (202) 466-0489, powersl@personalcarecouncil.org
Stefanie Harrington, (202) 615-6558, harringtons@personalcarecouncil.org
Jamie Kurke, (202) 454-0316, kurkej@personalcarecouncil.org

House Judiciary Committee Hearing Shines Light on Dangers of Counterfeit Products
Expert Witnesses Testify About Need for SHOP SAFE Act

Washington, D.C. — The U.S. House Committee on the Judiciary’s Subcommittee on Courts, Intellectual Property and the Internet held a hearing today highlighting efforts to address the critical and growing risk posed by online sales of counterfeit products, including cosmetics and personal care products. The hearing also focused on the SHOP SAFE Act, introduced last week, designed to protect consumers by stopping the online sale of harmful counterfeit products. Expert witnesses included the Personal Care Products Council’s (PCPC) Meredith Simpson, Michigan State University’s Kari Kammel, the Internet Association’s Jonathan Berroya and Foley Hoag LLP’s Natasha N. Reed.

“The Personal Care Products Council’s member companies invest substantial resources to ensure the safety and quality of their products and that those products meet federal and state safety and quality requirements,” PCPC’s Vice President, Federal Government Affairs Meredith Simpson stated in her testimony. “Counterfeit personal care products are fraud—they damage businesses, drain the economy, and most importantly, threaten consumer health and safety.”

Counterfeiting and Online Platforms Impact on Consumers and the Industry

According to a report from the Organization for Economic Cooperation and Development (OECD), the cosmetics industry loses more money to counterfeit products than any other industry, with losses reaching $5.4 billion each year to fraudulent sellers. These products sold to consumers likely do not meet the U.S. Food and Drug Administration’s (FDA) safety, efficacy and labeling requirements. Consumers often cannot distinguish between authentic and counterfeit products when shopping online because fraudulent sellers will use a brand’s product images and trademarks, creating confusion.

Illegally produced products do not adhere to federal or state safety and quality requirements and inherently pose health risks to consumers. Counterfeit cosmetics may be adulterated, tampered with, expired, and contain impurities or materials not of cosmetic grade. Consumers may be applying dangerous ingredients not intended for topical use directly to the skin, lips, eyes and other sensitive areas, including products indicated for children. In a January 2020 report to the President, the Department of Homeland Security noted that counterfeit cosmetics often contain arsenic, mercury, and aluminum and other contaminants, including harmful bacteria to human waste.

Industry Efforts to Mitigate Counterfeit Products on E-Commerce Platforms

At present, the burden of monitoring and enforcing against counterfeit goods on online platforms falls on the makers of the authentic products rather than on the platforms themselves. Brand owners engage directly and regularly with online platforms to address counterfeits. A single personal care product company may spend as much as $15 million annually to combat counterfeits, including monitoring the platforms and social media sites; enforcing against counterfeits through resource- and time-consuming notice and takedown processes; test buys and lab testing of purchases; and working and sharing information with competitors and federal, state, and local law enforcement. Smaller companies, however, often lack the resources needed to combat online counterfeits in the same way.

“However, despite aggressive efforts on the part of the personal care products industry to mitigate the harms of counterfeit good, too often our member companies are hindered by a lack of cooperation from the platforms and difficulty identifying sellers who can too easily hide and change their information, putting consumers at risk from these potentially dangerous products,” added Simpson.

PCPC supports establishing a framework to advance best practices for online platforms and sales to help ensure products sold on online platforms comply with U.S. laws and regulations.

Stopping Harmful Offers on Platforms by Screening Against Fakes in E-Commerce Act (SHOP SAFE)

House Judiciary Committee Chairman Jerrold Nadler (D-NY), Subcommittee on Courts, Intellectual Property and the Internet Chairman Henry C. “Hank” Johnson, Jr. (D-GA), Subcommittee on Courts, Intellectual Property and the Internet Ranking Member Darrell Issa (R-CA), and Representative Ben Cline (R-VA) introduced the SHOP SAFE Act in the House last week.  U.S. Senators Chris Coons (D-DE) and Thom Tillis (R-NC) introduced companion legislation in the Senate. The legislation includes many elements that PCPC members support, including:

  • Broad scope of platform definition to capture counterfeits where they are offered online, including social media;
  • Practices to prevent the occurrence of counterfeit goods before they are made available online, including:
    • Verification of seller information;
    • Displaying seller identity, location, and contact information (with exceptions for personal data); and
    • Screening for counterfeits before listing;
  • Repeat infringer policies;
  • Screening sellers to prevent terminated sellers from rejoining;
  • Provide verified information on infringing sellers to brand owners, when requested;
  • Prohibition of certain selling practices, such as the use of generic images rather than photographs of the actual item sold; and
  • Potential for liability for platforms that do not adopt the best

Simpson also suggested the Committee consider:

  • Consumer notification after a platform removes an illegal product that has been reported – consumers have a right to know they have purchased what could be a dangerous product;
  • Clarity in the legislation to ensure the processes and steps outlined in the bill work in practice for the platforms and brand owners to achieve what is intended, preventing and mitigating counterfeits getting in the hands of consumers, and;
  • Recognition that all counterfeits cause harm or have the potential to be dangerous – efforts to distinguish between those that could cause health and safety risks and those that may not could be confusing for consumers and cause impediments to effective

“We strongly support provisions in the SHOP SAFE Act that advance best practices for online platforms to help ensure that products sold on these platforms are authentic and safe,” Simpson concluded in her testimony. “We look forward to continuing our engagement with this Committee and with other stakeholders, including online platforms, government regulators and law enforcement, to advance solutions to combat counterfeit.”

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For more information about cosmetics and personal care products and their ingredients, please visit www.cosmeticsinfo.org.

Based in Washington, D.C., the Personal Care Products Council is the leading national trade association representing the global cosmetic and personal care products industry. Founded in 1894, PCPC’s 600 member companies manufacture, distribute, and supply the vast majority of finished personal care products marketed in the U.S. As the makers of a diverse range of products millions of consumers rely on every day, from sunscreens, toothpaste and shampoo to moisturizer, makeup and fragrance, personal care products companies are global leaders committed to product safety, quality and innovation.

More from PCPC

Testimony of Meredith Simpson Before House Judiciary Subcommittee on Courts, Intellectual Property and the Internet: Virtual hearing on The SHOP SAFE Act

Chairman Johnson, Ranking Member Issa, and distinguished members of the Subcommittee, thank you for the opportunity to testify today on behalf of the Personal Care Products Council (PCPC) on our support for the SHOP SAFE Act and the Subcommittee’s efforts to address the critical and growing risk posed by online sales of counterfeit products, including cosmetics and personal care products.

My name is Meredith Simpson, and I am Vice President, Federal Government Affairs and External Relations for the Personal Care Products Council (PCPC). PCPC is the leading national trade association representing global cosmetics and personal care products companies. Founded in 1894, PCPC’s approximately 600 member companies manufacture, distribute, and supply the vast majority of finished personal care products marketed in the U.S. – a $488 billion global industry. PCPC appreciates the Subcommittee holding this hearing and is pleased to offer our views on the importance of ensuring consumers always enjoy the same health and safety protections for products purchased online as those purchased in brick-and-mortar stores.

E-commerce platforms create valuable opportunities for legitimate companies to grow, reach new consumers, and provide buyers with numerous choices and convenience. However, the current structure is vulnerable to exploitation and contributes significantly to a rise in illicit trade. Our member companies invest substantial resources to ensure the safety and quality of their products and to meet federal and state safety and quality requirements. Counterfeit personal care products are fraud – they damage businesses, drain the economy, and – most importantly – threaten consumer health and safety. We strongly support provisions in the SHOP SAFE Act that advance best practices for online platforms to help ensure products sold on these platforms are safe and authentic.

Our Role in Strengthening Communities and the Economy
Cosmetics and personal care products companies are proud of their essential role in creating jobs, generating income, and making our communities stronger. In 2018, the personal care products industry was responsible for 3.9 million direct and indirect jobs representing 1.9% of total U.S. employment and $64.8 billion in tax payments at the federal, state, and local levels. Personal care products exports were more than 35% higher than imports, representing the second largest trade surplus in the manufacturing sector.1

Small businesses are the heart of the personal care products industry. Companies with fewer than 10 employees account for 34% of the industry’s employment, and those with fewer than 50 employees account for nearly 70%. Women make up nearly 77% of the industry’s workforce and people of color, 33%.

Like other industries, the beauty and personal care sector has felt the tremendous impact of the COVID-19 pandemic, from supply chain and manufacturing disruptions to declining sales. Throughout, our primary focus has been on the health and safety of our employees, our customers, and our communities. Many member companies quickly shifted their manufacturing lines to produce alcohol-based hand sanitizers for distribution to medical professionals; donated soap, personal hygiene, and household cleaning products to organizations operating on the front lines; and provided more than $150 million dollars in cash support to a range of relief and charitable organizations.

Our Commitment to Safety, Quality, and Innovation
As the makers of a diverse range of products millions of consumers rely on every day — from sunscreens, toothpaste, and shampoo to moisturizer, hand soap, and fragrance — personal care products companies are global leaders committed to product safety, quality and innovation. The average consumer uses 12 personal care products each day and trusts the makers of those products to supply them and their families with safe, high-quality products that meet all applicable regulatory requirements.

Cosmetics and personal care products are regulated by the U.S. Food & Drug Administration (FDA). Among other requirements, the Federal Food, Drug & Cosmetic Act requires that every product and its individual ingredients are safe before they are put on the market. Companies that manufacture or market cosmetics have a legal responsibility to ensure their products are safe and properly labeled, and current federal law provides penalties for failure to meet these requirements. Our member companies take their responsibility to make safe products very seriously. Consumer and product safety are top priorities for our industry, with careful and thorough scientific research and development serving as the foundation for everything we do.

The U.S. cosmetics industry invests nearly $3 billion every year in scientific research and development. As a result, approximately 2,000 innovative new products are launched annually. The industry employs nearly 6,000 scientific and technical professionals dedicated to ensuring product and ingredient safety. Companies also work with a number of scientific and medical experts – chemists, toxicologists, microbiologists, dermatologists, epidemiologists, environmental scientists, and other technical experts – to evaluate and ensure the safety of products before they reach the consumer.

Counterfeiting and Online Platforms
The volume of counterfeit goods reaching consumers, including via online platforms, is increasing.2 While global trade in counterfeit and pirated goods represented $200 billion in 2005 (equating to 1.9% of global trade), this figure reached $509 billion in 2016 and is predicted to increase to $991 billion by 2022.2 In 2019, U.S. Customs and Border Protection (CBP) seized 27,599 shipments containing goods violating intellectual property rights, which, if genuine, would have had an estimated MSRP of nearly $1.5 billion – up from $1.4 billion in 2018.3 Counterfeit goods are also estimated to result in a fiscal loss of $270 billion worldwide by 2022, with global employment losses ranging between 4.2 and 5.4 million, a non-negligible consideration in the context of the current global pandemic and its economic repercussions.4

Notably, according to a report from the Organization for Economic Cooperation and Development (OECD), the cosmetics industry loses more money to counterfeit products than any other industry, with losses of approximately $5.4 billion each year to fraudulent sellers.2 This means $5.4 billion of products that very likely do not meet FDA’s safety, efficacy, and labeling requirements are sold to consumers each year. Contrary to the popular perception of counterfeited products, luxury personal care products are not the only category at risk as there is a low barrier to entry online for all personal care products given that counterfeiters do not strive to meet the same safety and quality requirements as legitimate manufacturers.

Oftentimes, consumers cannot tell the difference between an authentic and counterfeit product when shopping online, as sellers will even utilize brand owners’ product images and trademarks in online offers. One of our members reports that every one of the more than thirty brands the company owns has been counterfeited – everything from nail polish and fragrance to shampoo and eye shadow palettes. The problem of online counterfeits is not exclusive to the platforms, as the personal care industry is increasingly seeing counterfeits offered on social media sites as well.

As highlighted in a 2020 Department of Homeland Security (DHS) Report, consumers in the United States, in particular, face an increasing risk of exposure from the sale of online counterfeits.5 In the second quarter of 2019, total year-over-year retail sales grew by only 3.2%, while e-commerce grew 13.3%.2 Amidst this growth in e-commerce, there has been a corresponding growth in the number of dangerous counterfeits being imported year after year.2 COVID-19 has only exacerbated and highlighted the severity of counterfeit availability on platforms due to the increase in online shopping. Counterfeit sales have proliferated during the pandemic; between March and April of 2020 alone, counterfeit sales increased by 38%.6 According to a study led by McKinsey & Company, more people have been making, and are expected to continue making, a portion of their purchases online post-COVID-19 than before.7

Beyond the health risks to the individual consumer using a counterfeit product, counterfeiting has repeatedly been tied to organized crime, encompassing terrorism, human trafficking, illegal weapons, and drug trafficking.8

Consumer Health Risks from Counterfeit Cosmetics
Since they are produced illegally and without adherence to federal or state safety and quality requirements, counterfeit products inherently pose health risks to consumers. Counterfeit cosmetics may be adulterated, tampered with, expired, and contain impurities or materials not of cosmetic grade, meaning consumers may be applying dangerous ingredients not approved for topical use directly to the skin, lips, eyes, and other sensitive areas, including products indicated for children’s use. In a January 2020 report to the President, the DHS noted that counterfeit cosmetics often contain elements such as arsenic, mercury, and aluminum and counterfeit personal care items have been found to be contaminated with substances from harmful bacteria to human waste.5

The dangers to consumers from counterfeit products are not limited to the type of non-authentic goods that typically come to mind – illicit products created entirely by a counterfeiter in a clandestine factory. Personal care products sold without their original packaging can also pose risks to consumers. Counterfeit packaging may contain dangerous metals, paints, chemicals, plastics, or other substances and lack FDA-required ingredient disclosure information.

Industry Efforts to Mitigate Counterfeit Products on E-Commerce Platforms
At present, the burden of monitoring and enforcing against counterfeit goods on online platforms falls on the makers of the authentic products, rather than on the platforms themselves. Brand owners engage directly and regularly with the online platforms to address counterfeits. A single personal care product company may spend as much as $15 million annually to combat counterfeits, including monitoring the platforms and social media sites; enforcing against counterfeits through resource- and time-consuming notice and takedown processes; test buys and lab testing of purchases; and working and sharing information with competitors and federal, state, and local law enforcement. Smaller companies, however, often lack the resources needed to combat online counterfeits in the same way.

Many companies employ robust brand protection teams to combat counterfeits, utilizing artificial intelligence and third-party monitoring services. Companies work closely with law enforcement – including CBP agents, Federal Bureau of Investigation (FBI), Department of Justice (DOJ), DHS, and local police officers – and some even put resources toward training the platforms and law enforcement to better detect counterfeits. Companies utilize multiple avenues to disrupt counterfeiters in the supply chain and anti-diversion efforts through multi-layered solutions built into product design – constantly innovating to try to stay ahead of counterfeiters.

The notice and takedown process is expensive and burdensome. One of our member companies, for example, employs 10 external firms to manage online platform notice and takedown processes; another brand owner has seen online platform notice and takedowns more than double over the last year – exemplifying the growing problem. Even if the platforms comply with the notice and takedown process, it is impossible to keep up with the number of counterfeit listings. Oftentimes, even when a listing or seller is removed, both could pop back up under new identities. When brand owners want to take action, the process is incredibly difficult – as many times these sellers are unknown entities.

The level of engagement of various online platforms related to counterfeits is increasing and we applaud several of these platforms for implementing programs to address illegal products and counterfeits. Platforms have the technology to identify and take down counterfeit listings. However, many platforms still do not have proactive measures in place, and those that purport to are often not transparent about their counterfeit prevention policies and processes, and there is a lack of standardization of counterfeit prevention policies and processes that all companies should follow. Brand owners, for example, have significant difficulty accessing verified information on sellers from the platforms. There is a need for a level playing field and not a long, burdensome process to hold these counterfeiters accountable.

In addition, our members also incur costs addressing reputational harm. Brand owners are inundated with complaints from consumers regarding counterfeit products purchased through online platforms, all of which brands must try to investigate and respond to in order to maintain and protect their reputation for quality goods and services and to help ensure the safety of their customers.

To date, despite aggressive efforts on the part of the personal care products industry to mitigate the harms of counterfeit goods, too often our members are stymied by a lack of cooperation from the platforms and difficulty in identifying sellers who can too easily hide and change their information – leading to a costly game of “whack-a-mole.” In the meantime, consumers continue to be put at risk from these potentially dangerous counterfeits.

Advancing Responsible Solutions: SHOP SAFE Act
PCPC supports the establishment of a framework to advance best practices for online platforms and sales to help ensure products sold on online platforms comply with U.S. laws and regulations. We applaud the introduction of the SHOP SAFE Act to establish provisions incentivizing e-commerce platforms to address the sale of counterfeits online and protect unsuspecting consumers from unsafe products being sold through these channels.

The SHOP SAFE Act includes many elements that PCPC members have stated would be helpful for combating online sales of counterfeit products, including:

  • Broad scope of platform definition to capture counterfeits where they are offered online, including social media
  • Practices to prevent occurrence of counterfeit goods before they are made available online, including:
    • Verification of seller information;
    • Displaying seller identity, location, and contact information (with exceptions for personal information); and
    • Screening for counterfeits before listing;
  • Repeat infringer policies;
  • Screening sellers to prevent terminated sellers from rejoining;
  • Provide verified information on infringing sellers to brand owners, when requested;
  • Prohibition of certain selling practices, such as the use of generic images rather than photographs of the actual item being sold; and
  • Potential for liability for platforms that do not adopt the best practices.

We wanted to highlight a few considerations for the Committee:

  • Consumer notification after a platform removes an illegal product that has been reported –consumers have a right to know they have purchased what could be a dangerous product;
  • Clarity in the legislation to ensure the processes and steps outlined in the bill work in practice for the platforms and brand owners – to achieve what is intended – preventing and mitigating counterfeits getting in hands of consumers, and;
  • Recognition that all counterfeits cause harm or have potential to be dangerous – efforts to distinguish between those that could cause health and safety risks and those that may not could be confusing for consumers and cause impediments to effective implementation.

In closing, we strongly support provisions in the SHOP SAFE Act that advance best practices for online platforms to help ensure that products sold on these platforms are authentic and safe. We look forward to continuing our engagement with this Committee and with other stakeholders, including online platforms, government regulators and law enforcement to advance solutions to combat counterfeit products online and establish strong consumer protections.

Thank you again for the opportunity to testify.

 

1Personal Care Products Council – Driving the Economy, Shaping the Future: Economic & Social Contributions Report 2020. (2020) https://www.personalcarecouncil.org/wp-content/uploads/2020/09/PCPC_EcoReport_2020.pdf
2OECD, EUIPO, Illicit Trade – Trends in Trade and in Counterfeit and Pirated Goods (2019); OECD, The Economic Impact of Counterfeit and Piracy (2008); EUROPOL and EUIPO, 2019 Intellectual Property Crime Threat Assessment Report (2019).
3U.S. Customs and Border Protection, Operation Mega Flex Stops Hundreds of Illicit “Made in China” Shipments at LAX
(October 30, 2020), https://www.cbp.gov/newsroom/local-media-release/operation-mega-flex-stops-hundreds-illicit-made-china-shipments-lax
4INTA and ICC-BASCAP, The Economic Impacts of Counterfeiting and Piracy (2017).
5U.S. Department of Homeland Security, Combatting Trafficking in Counterfeit and Pirated Goods, Report to the President of the United States (January 24, 2020) https://www.dhs.gov/sites/default/files/publications/20_0124_plcy_counterfeit-pirated-goods-report_01.pdf
6International Chamber of Commerce, Guide to Managing Counterfeiting and Piracy Risks in the COVID-19 Era, July 2020.
7Survey: US Consumer Sentiment During the Coronavirus Crisis, McKinsey & Company (December 8, 2020),
https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-us-consumer-sentiment-during-the-coronavirus-crisis.
8Union des Fabricants (UNIFAB), Counterfeiting & Terrorism – Edition 2016 (2016), https://www.unifab.com/wp-
content/uploads/2016/06/Rapport-A-Terrorisme-2015_GB_22.pdf.

More from PCPC

Sun Safety and Wellness After COVID

By Carl D’Ruiz
Senior Manager, NA Personal Care Regulatory Affairs
DSM Nutritional Products LLC

Summer unofficially kicks off Memorial Day weekend, and many people will soon be spending more time outdoors, in the water and traveling to sunny destinations. As more people receive COVID-19 vaccinations and restrictions are lifted, it feels more exciting than ever to be outside enjoying the sun and summer season. But, it’s also critically important to protect your skin from over-exposure to the sun. And health experts worldwide agree that sun protection helps prevent sunburns, premature skin aging and skin cancer.

Skin Cancer Facts

Over-exposure to ultraviolet (UV) light – invisible sun rays that can damage skin cells – causes most skin cancers. In the Unites States alone, nearly 5 million people are treated for skin cancer each year. Although those with lighter skin are at higher risk, anyone can get skin cancer. People with darker skin may often be diagnosed with skin cancer at a later stage, making it more difficult to treat.

While skin cancer is one of the most common cancers, it is also one of the most preventable. According to the World Health Organization (WHO), four out of five cases can be prevented by following safe-sun practices including limiting your time in the sun, seeking shade, wearing protective clothing and using sunscreens regularly.

Sunscreens are a key factor in preventing and reducing the risk of skin cancer and UV-induced skin damage. Nonprofit health organizations, including the American Cancer Society, American Academy of Dermatology (AAD), Mayo Clinic and Skin Cancer Foundation, recommend using sweat- and water-resistant broad-spectrum (protects against UVA and UVB rays) sunscreens with a sun protection factor (SPF) of 30 or higher as part of a safe-sun regimen. The Centers for Disease Control and Prevention (CDC) notes the importance of daily sunscreen use, including on cloudy and overcast days, to help prevent most skin cancers.

Sunscreen History and Regulation

What many people don’t know is that sunscreens are regulated as over-the-counter (OTC) drugs under a monograph system by the U.S. Food and Drug Administration (FDA). A monograph gives instructions for how to manufacture a product and establishes various requirements for it to be sold and used in the U.S. You can think of it like a recipe in that it provides the types of ingredients, dosage forms, testing methods, labeling requirements and so forth for a given product category, such as sunscreens or antiperspirants. FDA, the regulatory body in the U.S. that comes up with the recipe for all OTC products, requires all sunscreens meet strict product safety, efficacy and labeling standards before they can be marketed or sold in the U.S.

 

The sunscreen monograph has undergone many different regulatory updates throughout the decades.  For example, in early 2019, FDA published a proposed rule for updated sunscreen regulations, called the Sunscreen Tentative Final Monograph (TFM). In March 2020, Congress passed the CARES (Coronavirus Aid, Relief, and Economic Security) Act, a relief legislation in response to the COVID crisis, which also contained some provisions related to sunscreens and the OTC drug system, generally OTC Reform. These provisions referred to earlier FDA sunscreen regulations and took precedence over the proposed 2019 TFM. As part of additional language in the CARES Act, FDA is expected to propose new sunscreen regulations by this fall.

Practically speaking, this is all a bit confusing, and we are waiting to get more information on the implementation of OTC Reform. Here’s what you need to remember in the meantime:

FDA emphasizes that Americans should continue to use sunscreens with other sun-protective measures. The dangers of sun exposure are clear and universally recognized by public health professionals and dermatologists worldwide.

As an industry, we remain deeply committed to product safety and providing consumers with safe and effective products that meet their diverse needs. The more products consumers can choose from, the more likely they are to use the ones they choose. Cosmetics and personal care products companies are proud of the innovative sunscreen products they develop to help protect consumers from the harmful effects of the sun’s UV rays.

This Memorial Day weekend, remember to apply your sunscreen – 30 minutes before going outside and then every two hours, or immediately after swimming or sweating – and enjoy being outside after 14 months of COVID.  

Carl D’Ruiz serves as chair of PCPC’s Sunscreen Consortium, which leads and aligns the U.S. industry’s strategy and approaches for substantiating the safety and efficacy of sunscreen UV filters, and advocates the public health benefits associated with sunscreens.

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Statement by Lezlee Westine, President and CEO, Personal Care Products Council, on the Introduction of the SHOP SAFE Act of 2021

FOR IMMEDIATE RELEASE

Contacts:  

Lisa Powers, (202) 466-0489, powersl@personalcarecouncil.org
Stefanie Harrington, (202) 615-6558, harringtons@personalcarecouncil.org
Jamie Kurke, (202) 454-0316, kurkej@personalcarecouncil.org

Washington, D.C. — “The Personal Care Products Council (PCPC) and its member companies appreciate House Judiciary Committee Chairman Jerrold Nadler (D-NY); Subcommittee on Courts, Intellectual Property, and the Internet Chairman Henry C. “Hank” Johnson, Jr. (D-GA); Subcommittee on Courts, Intellectual Property, and the Internet Ranking Member Darrel Issa (R-CA); and Rep. Ben Cline (R-VA) for introducing the Stopping Harmful Offers on Platforms by Screening Against Fakes in E-Commerce (SHOP SAFE) Act of 2021. We strongly support its passage.

“E-commerce platforms create opportunities for legitimate companies to grow and reach new consumers, providing them with more choices and greater convenience. However, the current structure is vulnerable to exploitation and contributes significantly to a rise in illicit trade. Counterfeit personal care products damage businesses, disregard regulatory protections and more importantly threaten consumers’ health and safety.

“Consumers should have the same assurance that the products they purchase online are as safe and effective as the products they purchase in a brick and mortar store. Our member companies invest substantial resources to ensure the safety and quality of their products and U.S. laws hold our members accountable for doing so. The SHOP SAFE Act would even the playing field.

“We encourage Congress to establish a system that makes online marketplaces and others responsible for ensuring that products on their e-commerce platforms comply with U.S. laws and regulations. Legislation should also establish a minimum threshold for submission and validation of identification, banking and product authentication documentation to provide consumers greater confidence that the products they purchase are authentic and safe.

“We look forward to working with members of Congress and other stakeholders to raise awareness and develop solutions to combat the online sale of counterfeit products and establish stronger consumer protections.”

###

For more information on cosmetics and personal care products, please visit www.CosmeticsInfo.org. 

Based in Washington, D.C., the Personal Care Products Council (PCPC) is the leading national trade association representing global cosmetics and personal care products companies. Founded in 1894, PCPC’s 600 member companies manufacture, distribute and supply the vast majority of finished personal care products marketed in the U.S. As the makers of a diverse range of products millions of consumers rely on and trust every day – from sunscreens, toothpaste and shampoo to moisturizer, makeup and fragrance – personal care products companies are global leaders committed to product safety, quality and innovation.

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The Personal Care Products Council Announces Inaugural Madam C.J. Walker Award for Excellence in Diversity, Equity and Inclusion

FOR IMMEDIATE RELEASE

CONTACTS:     

Lisa Powers, (202) 297-1232, powersl@personalcarecouncil.org
Stefanie Harrington, (202) 615-6558, harringtons@personalcarecouncil.org
Jamie Kurke, (202) 454-0316, kurkej@personalcarecouncil.org  

The Personal Care Products Council Announces Inaugural
Madam C.J. Walker Award for Excellence in Diversity, Equity and Inclusion
Beauty Industry Recognizes Latriece Watkins, EVP, Walmart, as DEI Champion

Washington, D.C. – The Personal Care Products Council (PCPC) is proud to announce its first annual Madam C.J. Walker Award for Excellence in Diversity, Equity and Inclusion (DEI). The award recognizes individuals who demonstrate an outstanding commitment to DEI through strong leadership and sustained efforts with a focus on workplace culture, programs and policies, or through external engagement with consumers and communities.

Presented at the 2021 PCPC Virtual Summit, the selection committee awarded this distinction to Latriece Watkins – executive vice president, Consumables, Walmart U.S. – in recognition of her dedication to advance DEI. Watkins is broadly recognized and admired across the industry as someone who leads with respect and lifts others. She champions DEI programs that create sustained, consistent and significant impact, both within her company and her community. PCPC’s Madam C.J. Walker Award recognizes the industry’s commitment to a more inclusive society.

“Beauty and personal care products companies are committed to helping shape a more diverse, equitable and inclusive world. This award is an opportunity to recognize peers who are ahead of the curve and leading by example,” said Keech Combe Shetty, PCPC Board chair & executive chair, Combe, Inc. “It is my distinct honor to present the first award to Latriece, a catalyst for change whose exemplary work inspires us all to do better.”

The award honors industry pioneer Madam C.J. Walker – who started her hair care business at the turn of the century, during a time when women of color had few rights and little opportunity. The Award will be given each year during PCPC’s Annual Meeting (held virtually in 2021) to an individual in the cosmetics or personal care products industry. Nominees will be judged on areas of achievement based on predetermined criteria.

“We are proud of our progress and, while we know there is more work to be done, we are fully committed to creating a more beautiful and sustainable world,” said Lezlee Westine, president & CEO, PCPC. “It is critically important that we examine society’s challenges and do what we can to address them.”

Photo: Latriece Watkins

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The Personal Care Products Council (PCPC) is the leading national trade association representing the global cosmetics and personal care products industry. Founded in 1894, PCPC represents 600 member companies who manufacture, distribute and supply the vast majority of finished personal care products marketed in the U.S. As the makers of a diverse range of products millions of consumers rely on every day, from sunscreens, toothpaste and shampoo to moisturizer, makeup and fragrance, personal care products companies are global leaders committed to product safety, quality and innovation.

For more information on cosmetics and personal care products and their ingredients, please visit www.CosmeticsInfo.org. 

 

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Statement by Alexandra Kowcz, Chief Scientist, Personal Care Products Council, in Response to the Environmental Working Group’s 2021 Sunscreens Guide

FOR IMMEDIATE RELEASE

CONTACTS:       

Lisa Powers, (202) 297-1232, powersl@personalcarecouncil.org
Stefanie Harrington, (202) 615-6558, harringtons@personalcarecouncil.org
Jamie Kurke, (202) 258-5285, kurkej@personalcarecouncil.org

Washington, D.C. – “The cosmetics and personal care products industry is proud of the innovative sunscreen products we provide to help protect consumers from the harmful effects of the sun’s ultraviolet (UV) rays. Sunscreen use is a crucial and well-recognized step in the fight against skin cancer. It is unfortunate that just as Americans are seeing a light at the end of the tunnel in the fight against COVID-19 and will soon be spending more time outdoors, the Environmental Working Group’s (EWG) 2021 Guide to Sunscreens unnecessarily alarms consumers with information that may be harmful to public health. More importantly, EWG’s claims could keep consumers from using sunscreen altogether.

“EWG’s 2021 shopping guide contains little new information in comparison to previous reports. For example, this report claims that sunscreens containing zinc oxide, titanium dioxide or both as active ingredients are better for consumers and implies a conclusion that the Food & Drug Administration (FDA) – the agency that regulates sunscreens in the U.S. – did not reach. EWG suggests that sunscreen products containing other active ingredients may be harmful. FDA has rejected this characterization and has publicly stated that Americans should continue to use sunscreens.

“Working with our industry, FDA has requested additional information on some sunscreen ingredients, emphasizing that this does not mean that the ingredients are unsafe. Ensuring that consumers have access to products containing a broad variety of sunscreen active ingredients is critical and an important contribution to FDA’s public health mission.

“EWG also claims that the majority of sunscreen products in the marketplace today offer inferior broad-spectrum protection from UV radiation. It is important to note that all sunscreen products in today’s marketplace are regulated by FDA as over-the-counter (OTC) drugs. FDA requires rigorous testing for sunscreen effectiveness (both Sun Protection Factor [SPF] and Broad Spectrum). Broad-spectrum sunscreens must protect against both UVB and UVA radiation. Consumers can be confident that these reliable and credible testing methods, which are well recognized by scientific experts and regulatory authorities across the globe, result in sunscreens that are safe and effective in protecting them from harmful UV rays.

Oxybenzone and Homosalate
“Oxybenzone, unjustly criticized by EWG every year, is one of the few FDA-approved ingredients that provides safe and effective broad-spectrum protection, and has been approved and safely used since 1978. Additionally, it is approved for use in Europe, Canada, Japan, Australia, China, Korea, Mexico, Taiwan and Brazil. Oxybenzone protects against UVA rays, which penetrate more deeply into the skin and have been scientifically proven to contribute to skin cancer.

“Homosalate is another active ingredient mentioned in EWG’s guide. This UV filter has also been approved by FDA for use in sunscreens since 1978 and has a long history of use in Europe, Japan, China, Australia, Canada and South America.

Sunscreens and Sun Safety
“The American Cancer Society, American Academy of Dermatology, the Mayo Clinic and the Skin Cancer Foundation recommend using sunscreen as part of a safe-sun regimen to prevent skin cancer. The Centers for Disease Control and Prevention’s Sun Safety recommendations note the importance of daily sunscreen use, including on cloudy and overcast days, to help prevent most skin cancers. Sun exposure dangers are clear and universally recognized by public health professionals and dermatologists. The National Toxicology Program identifies solar UV radiation as a ‘known human carcinogen.’ A single bad burn as a child is known to increase the skin’s susceptibility to damage and skin cancer throughout life.

“Some simple tips for sun safety include:

  • Avoiding the sun during the peak hours of 10 a.m. – 4 p.m.
  • Wearing sun protective clothing, including a broad-brimmed hat and UV protective sunglasses
  • Using a broad-spectrum sunscreen with an SPF of 30 or higher every day, even on cloudy days
  • Reapplying sunscreen every two hours or immediately after swimming or sweating
  • Seeing your health care professional every year for a skin exam

“Our goal continues to be to help consumers make informed decisions and use sunscreen as an important part of a daily safe-sun program. It is our hope that using sunscreen becomes as much of a habit as using your seat belt.”

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For more information on cosmetics and personal care products, please visit www.CosmeticsInfo.org. 

Based in Washington, D.C., the Personal Care Products Council (PCPC) is the leading national trade association representing global cosmetics and personal care products companies. Founded in 1894, PCPC’s 600 member companies manufacture, distribute and supply the vast majority of finished personal care products marketed in the U.S. As the makers of a diverse range of products millions of consumers rely on and trust every day – from sunscreens, toothpaste and shampoo to moisturizer, makeup and fragrance – personal care products companies are global leaders committed to product safety, quality and innovation.

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