The Economics of Beauty
Cosmetics Rules and Animal Testing
How cosmetics are regulated in India, why India banned animal testing for cosmetics in 2014, and how safety rules protect consumers.
Cosmetics are regulated to protect consumers.
India’s rules
- Cosmetics are regulated by the Central Drugs Standard Control Organisation (CDSCO) under the Drugs and Cosmetics Act, 1940 and the Cosmetics Rules, 2020.
- Imported cosmetics must be registered.
- Labels must list ingredients.
Animal testing ban
- In 2014, India banned testing of cosmetics on animals, becoming one of the first countries in Asia to do so.
- It also banned imports of cosmetics tested on animals.
- The EU had fully banned such testing and sales by 2013.
Safety concerns
- Mercury in some skin-lightening creams.
- Heavy metals in some cheap products.
- Counterfeit cosmetics sold online.
Why regulation matters
Consumers can’t easily test products, an information asymmetry. Regulation provides safety assurance.
Costs
Registration and testing raise costs for brands, especially small ones.
The mercury cream
Tests find some unregulated skin creams sold online contain mercury, which can cause serious health problems. Regulators order them removed.
Thinking all cosmetics sold are tested for safety
Counterfeit and unregulated products can be unsafe.
Key takeaways
- CDSCO regulates cosmetics under the 1940 Act and 2020 Rules.
- India banned cosmetics animal testing in 2014.
- Mercury, heavy metals and fakes are safety concerns.
- Regulation addresses information asymmetry.
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