Understanding MoCRA: What It Means for the Beauty Industry

In today’s competitive beauty industry, staying ahead of regulatory changes is essential for long-term success. As consumer expectations evolve and regulations become more stringent, beauty brands must ensure they are compliant with new laws to protect their reputation, build consumer trust, and avoid costly penalties. 

Keeping up with evolving regulations not only helps brands stay legally compliant but also fosters a commitment to safety and transparency that consumers value. Whether you're a small independent brand or an established player, the right beauty help can be invaluable in ensuring you stay ahead of the curve.  

One such significant change came in December 2022, when Congress passed the Modernization of Cosmetics Regulations Act (MoCRA) as part of the Omnibus Spending Bill. This marked a major shift in FDA cosmetics regulations, affecting everything from manufacturing to product labeling.

Let’s review how this shift rippled in cosmetics 2023 and have continued to shape the years beyond it. 

Key Provisions of MoCRA 

The updated regulations targeted to improve consumer safety and normalize oversight in the cosmetics beauty industry. The main provisions include:

• Adverse Event Reporting & Labeled Contact Information: Brands must offer clear contact details for consumers and report any unfavorable effects.
• Manufacturing Facility & Product Registration: All spaces or facilities manufacturing FDA cosmetics must register and list their products. 
• Mandatory Good Manufacturing Practices (GMPs): Verifying product consistency and safety.
• Labeling of Fragrance Allergens: Updated labeling requirements to notify consumers about potential allergens.
• Safety Substantiation: Manufacturers must have proof demonstrating their products are safe.
• Records Access by FDA: The FDA will have more authority to inspect company certificates and records.
• Mandatory Recall Authority: The FDA can now call back unsafe beauty cosmetics.

Notably, MoCRA does not impose user fees on cosmetic businesses, unlike the pharmaceutical and medical device industries — which must pay fees for FDA oversight. Beauty brands will not have to worry about any additional costs. This is specifically beneficial for independent beauty brands and smaller businesses, as it lowers financial barriers to compliance and growth.

IBA’s Role in Shaping MoCRA

For nearly 50 years, the Independent Beauty Association (IBA) has been the cornerstone for the independent beauty sector, engaging with regulatory bodies and legislators to guarantee fair policies for small and medium-sized brands. IBA worked closely with Congress and FDA, offering industry insights to mold fairer policies. A huge victory was blocking new user fees, which could have placed an unnecessary financial burden on small and growing beauty brands. 

Now that MoCRA is being integrated, IBA continues to push for:

• Practical Safety Standards: Favoring the use of Toxicology Risk Assessments already recognized internationally, lowering redundant testing requirements.
• Standardized Regulations: Advocating alignment between U.S and EU manufacturing standards to simplify compliance for global brands.
• Clear and Consistent Labeling: Running to certify that labeling requirements align globally, making it smoother for brands to sell across markets without excessive changes.

IBA remains committed to keeping its members well informed and engaged as these regulations take shape. And MoCRA? It’s reshaping the cosmetics beauty landscape, and businesses must stay ahead of the curve.

Ekwani Consulting & IBA: A Strategic Partnership

At Ekwani, we see that adapting to regulatory changes like MoCRA and other FDA cosmetic regulations requires efficiency and strategic planning. Our expertise in procurement optimization aids our beauty brand clients in streamlining operations and remaining cooperative. With NetSuite and Celigo integrations, we allow brands to automate sourcing, improve financial transparency, and simplify purchase order approvals, which are all essential tools in today’s evolving beauty industry. 

We’re also proud to collaborate with the IBA for upcoming networking events, bringing industry leaders together to talk about key obstacles and opportunities. If you’re attending NYSCC Suppliers Day, join us at the IBA’s New York reception to explore how technology can turn compliance and procurement into competitive advantages.