Cosmetics industry fights notification on product tagging

Incensed over the BJP-led NDA government’s decision to put a “veg or non-veg” tag on soaps, shampoos, toothpaste and toiletries, the cosmetics industry has moved court challenging the rationale and legality of the decision.

Within a month of the Narendra Modi government coming to power, the department of consumer affairs came out with the controversial notification on June 16.

“Every package containing soap, shampoo, toothpaste and other cosmetics and toiletries shall bear at the top of its principal display panel a red or a brown dot for products of non-vegetarian origin and a green dot for products of vegetarian origin,” read the notification, issued under the Legal Metrology Act, 2009 and Legal Metrology (Packaged Commodities Rules, 2011). The notification was to be implemented from July 1.

The Rs 60,000-crore beauty industry moved the court against this notification with the Indian Beauty and Hygiene Association (IBHA) filing a case in the Bombay High Court on September 3.

On September 9, the division bench of the Bombay HC stayed the implementation of the notification and asked the legal metrology department under the consumer affairs ministry not to take any coercive action against companies. The Centre was asked to file its response within two weeks, which lapsed on September 23. The government has sought more time and the matter was posted for November 5.

“The entire industry felt the notification was issued without any prior consultation and without due consideration of the feasibility for the implementation of the same,” Malathi Narayanan, IBHA, Secretary General told Deccan Herald from Mumbai.

Cosmetics often use animal fats and oils and some pigments derived from animal sources. The industry argument is that since these products were not meant to be eaten, what is the point in packaging them like food products with veg or non-veg symbols.

Two leading manufacturers of such products — Hindustan Unilever and Procter and Gamble — declined to react to the government notification when approached by Deccan Herald. But they noted that IBHA as an industry association has taken up the issue with the government and moved court.

The Indian beauty product industry is growing roughly at 20 per cent. As per a 2012 IBHA estimate, personal care products account for more than half of the industry, at Rs 35,000 crore. The next big contributor is toilet soap products to the tune of Rs 13000 crore, followed by oral care and skin care products. The notification would be applicable to all these products.

A similar controversy had erupted when  Atal Bihari Vajpayee was in power and the then minister Maneka Gandhi filed a PIL in Delhi High Court seeking the red dot-green dot tagging for cosmetics and beauty care products.