A series of cosmetic recalls around the world has posed significant challenges to the beauty industry. Issues ranging from Johnson & Johnson's asbestos-containing talc powder (a carcinogen) to top-brand skin care products and cases of allergenic ingredients have raised concerns about the quality and safety of cosmetics. Meanwhile, in Vietnam, the Drug Administration of Vietnam has recently announced the suspension, recall and destruction of 07 cosmetic product lines of Vietnam International Market Joint Stock Company because the ingredients and the formula stated on the label are not in accordance with the product declaration receipt.
The suspension and recall of cosmetic products will significantly affect cosmetic companies as it will cause financial loss as well as damage to the company's reputation. Therefore, when products are suspended or recalled, companies should take necessary measures to minimize the potential risks.
(Source: Internet)
1. Examination of the legitimacy of the decision to recall
According to Point a Clause 2 Article 45 of Circular 06/2011/TT-BYT on Cosmetic Management, the Drug Administration of Vietnam is the state agency in charge of recalling cosmetic products nationwide. At the same time, Circular 06/2011/TT-BYT also prescribes the circumstances under which the cosmetic products of enterprises may be suspended or recalled as follows:
- The cosmetic product is placed on the market without being issued with a cosmetic proclamation receipt;
- Poor quality or unsafe cosmetic products;
- The cosmetic products being placed on the market have formulas that differ from the products’ proclamation dossier;
- The cosmetic products contain a prohibited substance or the concentration of the substance exceeds the permissible level;
- The cosmetic products placed on the market that do not conform to the proclamation dossier or do not comply with the regulations on product labeling may be suspended or recalled, depending on the degree of violation;
- The cosmetic product is manufactured in a facility that does not comply with the regulations and standards of "Cosmetics Good Manufacturing Practice" issued by the ASEAN countries (CGMP-ASEAN) or the equivalent approved by the ASEAN Cosmetic Association, and may be suspended or recalled depending on the degree of violation.
- The cosmetic products are expired according to the manufacturer’s warning;
- The cosmetic products are found to be counterfeit, illegally imported, of unclear source, of unclear origin, and inadequately packaged.
- The cosmetic product is voluntarily recalled in writing by the organization or person responsible for placing it on the market.
Therefore, upon receiving a decision to suspend or recall cosmetic products, companies should check the authority to issue the decision and the reasons for the recall by the competent authorities to ensure that the reasons are in compliance with Circular 06.
List of 07 cosmetic products recalled and destroyed by Vietnam International Market Joint Stock Company (Source: Official Dispatch No. 10463/QLD-MP dated December 14, 2023 of the Drug Administration of Vietnam)
2. Inspection of recalled cosmetic products
If the decision on product suspension or recall has been issued by the competent authority and based on the correct grounds according to the law, enterprises must also inspect the batch of products mentioned in the decision to ensure that their products fall under the cases of product recall, or whether this decision applies to the products of the enterprise.
According to the process of recalling infringing cosmetic products, the Drug Administration of Vietnam will receive complaints about infringing cosmetic products from various sources, including testing units, other state agencies, other cosmetic trading units, other organizations or individuals, consumers, etc. Each source will provide different evidence, such as test sheets or analysis sheets attached to the sampling records for the samples of the infringing product; inspection records, reports from the inspectorates of the Ministry of Health or the Drug Administration of Vietnam, quality inspectors (under the Ministry of Health), relevant authorities, or reports from cosmetic trading companies, etc.
However, it does not mean that the marketing company loses the right to self-inspect the recalled products. In particular, the company can hire a testing unit to obtain test samples of its products and at the same time re-inspect its entire manufacturing and distribution process. If the enterprise finds that there are violations as concluded by the competent authority, the enterprise may send a written notice in response to the decision or file a complaint against the decision.
Otherwise, companies may distribute their products through many agencies nationwide, and each agent may sell cosmetic products from different sources. Therefore, it is inevitable that the products will be counterfeit and recalled by the decision of the relevant agencies. In this case, the company must check the origin of the recalled products at the agent's place by clarifying the sales and purchase and import documents of such products. If there is evidence that the recalled products are counterfeit or inferior goods, the enterprises have the right to respond or file a complaint to the competent authority as in the case mentioned above.
(Source: Internet)
3. When the products are legally recalled
If the company has taken the above measures and the decision to recall the cosmetic products is still legal, it should quickly cooperate with the relevant agency to recall the cosmetic products. The work that enterprises can do during this period may include widely notifying distributors who have distributed their products to recall cosmetics, suspending the production and importation of the recalled products, proactively contacting distributors to gather information about the damage in order to take prompt action and limit the potential losses.
In addition, enterprises must take note of the obligation to submit a report to the Drug Administration of Vietnam to recall infringing cosmetic products within the time limit set by the decision, which will vary depending on the degree of violation.
In conclusion, the suspension and recall of infringing cosmetic products may be an urgent requirement for enterprises, but not so that enterprises skip the necessary verification and self-inspection steps for the decisions on suspension and recall of cosmetic products issued. Verification of the legality and accuracy of this decision is the basis for enterprises to decide whether to comply with the obligations/responsibilities for infringing cosmetic products or to have necessary and timely responses and complaints against the decisions issued by the competent authority.
