Commonwealth Numbered Regulations - Explanatory Statements

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TRADE PRACTICES (CONSUMER PRODUCT INFORMATION STANDARDS) (COSMETICS) REGULATIONS 1991 NO. 327

EXPLANATORY STATEMENT

STATUTORY RULES 1991 No. 327

Issued by the authority of the Minister for Justice and Consumer Affairs

Trade Practices Act 1974

Trade Practices (Consumer Product Information Standards) (Cosmetics) Regulations

Section 172 of the Trade Practices Act 1974 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.

Section 65D(2) of the Act provides that a regulation may, in respect of goods of a particular kind, prescribe a consumer product information standard consisting of such requirements as to:

(a)       the disclosure of information relating to the performance, composition, contents, method of manufacturing or processing, design, construction, finish or packaging of the goods; and

(b)       the form and manner in which that information is to be disclosed on or with the goods

as are reasonably necessary to give persons using the goods information as to the quantity, quality, nature or value of the goods.

Section 65D(1) of the Act provides that a corporation shall not, in trade or commerce, supply goods that are intended to be used or are of a kind likely to be used by a consumer, if those goods are of a kind in respect of which a consumer product information standard has been prescribed, unless the corporation has complied with that standard in relation to those goods.

The purpose of the Regulations is to provide consumers with information about the ingredients which have been used in cosmetic products. It is recognised that a number of people are sensitive, or may become sensitive, to certain ingredients contained in cosmetic products. Whilst particular types of ingredients are more likely to cause adverse reactions in users, other ingredients can also cause such reactions. The Regulations:

-       satisfy consumer requests for ingredient information about cosmetic products, especially at those retail outlets where information cannot be obtained from sales assistants, e.g. supermarkets;

-       enable consumers to make value comparisons between similar products:

-       enable consumers to identify those products containing ingredients which may irritate them. or may cause an allergic reaction; and

-       identify products which contain ingredients which are found to be potentially harmful after the product has been manufactured.

Cosmetic products are currently imported into Australia from over 50 countries but their ingredients are largely unknown to Australian consumers.

The Regulations are closely aligned with the US system for the ingredient labelling of cosmetic products which was introduced in 1972. The European Community first introduced cosmetic labelling requirements in 1976 and is now believed to be considering changing its laws so that they are more closely aligned with the US requirements.

The Australian Regulations vary from the US requirements in that the US excludes professionalproducts used in beauty salons or by cosmeticians, theatrical make-up and direct-mail cosmetic products from its ingredient labelling requirements. No specific exemption has been provided for these items in the Regulations as it is considered that Australian consumers are entitled to have information about the ingredients in these products.

Details of the Australian Regulations are as follows:

Regulation 1 specifies the citation.

Regulation 2 states that the Regulations apply to cosmetic products manufactured in Australia and intended for use in Australia, and those imported into Australia. The date of effect is 31 October 1993.

Regulation 3 defines the words "container", "cosmetic product", "flavour", "fragrance" and "incidental ingredient" for the purpose of interpreting the Regulations.

Regulation 4 exempts those cosmetic products which are therapeutic goods within the meaning of the Therapeutic Goods Act 1989 and those which are testers or free samples from compliance with the Regulations.

Regulation 5:

(a)       specifies where the ingredient list is to appear;

(b)       specifies the order in which ingredients are to be listed;

(c)       provides for the ingredient labelling of products which vary in their ingredients only in respect of their colour additives;

(d)       permits identification of flavours and fragrances by those generic terms if desired; and

(e)       permits the exemption of incidental ingredients from the list of ingredients.

Regulation 6 states that the list of ingredients must be prominently shown, clearly legible and in English (although another language may be used in addition to English).

Regulation 7 provides the Minister with the power to declare, on the request from a manufacturer or importer of a cosmetic product, that a particular ingredient may be shown in the list of ingredients as an "other ingredient" instead of by name if the Minister is satisfied that revealing the name of the ingredient would prejudice a trade secret and that inclusion of the ingredient in the product is unlikely to be harmful to consumers.

Regulation 8 provides that where the Minister refuses an application by a manufacturer or importer under regulation 7, a person whose interests are affected by the decision can apply to the Administrative Appeals Tribunal for a review of the Minister's decision. It also provides that the Minister must include a statement about the right of appeal to the Administrative Appeals Tribunal and the right to request a statement under section 28 of the Administrative Appeals Tribunal Act 1975 when notifying the applicant that the request has been refused.


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