FDA 1% Labeling Rule: Your Cosmetic Product – What’s In the Bottle?

How the FDA 1% Labeling Rule Can Be Used To Manipulate A Product’s List of Ingredients

The FDA’s Labeling Rule for cosmetic product list of ingredients requires that cosmetic ingredients are listed in descending order of the percent on an ingredient included in the formula based on a weight/weight basis.

But, for all ingredients included at 1% or less, the ingredients can be listed in any order.

While there is lots of talk about Transparency in cosmetic products, let me show you how the product list of ingredients is not nearly as transparent as you might think.


Comparing Two Serums

Serum 1
Water (92.2%), Niacinamide (4%), Hydrolyzed DNA (PDRN) (0.9%), Ectoin (0.8%), Fucoidan (0.7%) Phenoxyethanol (0.6%), Sodium Hyaluronate (0.5%), Sodium Benzoate (0.3%)

The product LOI could be listed as:
Ingredients: Water, Niacinamide, Hydrolyzed DNA, Ectoin, Fucoidan, Sodium Hyaluronate, Phenoxyethanol, Sodium Benzoate


Serum 2
Water (94.588%), Niacinamide (4%), Hydrolyzed DNA (0.005%), Ectoin (0.004%), Fucoidan (0.003%), Phenxoyethanol (0.6%), Sodium Hyaluronate (0.5%), Sodium Benzoate (0.3%)

The product LOI could be listed as:
Ingredients: Water, Niacinamide, Hydrolyzed DNA, Ectoin, Fucoidan, Sodium Hyaluronate, Phenoxyethanol, Sodium Benzoate


The Problem

Wait! Even though Serum 2 contains miniscule amounts of Hydrolyzed DNA, Ectoin & Fucoidan, the list of ingredients for the two Serums can be listed exactly the same!

How do you know the difference between the two Serums from reading the product List Of Ingredients? You don’t and you can’t.


LATAM (Latin America) Labeling Rule – A More Transparent Approach

In LATAM countries, ingredients in cosmetic products must be listed in descending order of percent inclusion on a weight/weight basis. There is no 1% Rule.

In LATAM, the List Of Ingredients for Serum 1 would be:
Ingredients: Water, Niacinamide, Hydrolyzed DNA (PDRN), Ectoin, Fucoidan, Phenoxyethanol, Sodium Hyaluronate, Sodium Benzoate

And, the List Of Ingredients for Serum 2 would be:
Ingredients: Water, Niacinamide, Phenoxyethanol, Sodium Hyaluronate, Sodium Benzoate, Hydrolyzed DNA, Ectoin, Fucoidan


Why It Matters

This is much more transparent and representative of the rank order of percent inclusion of ingredients in the product.

Using the LATAM Labeling Rule, I know that the actives Hydrolyzed DNA, Ectoin & Fucoidan in Serum 1 are included at 0.6% or more because Phenoxyethanol is usually included at 0.6% in cosmetic products.

Again, using the LATAM Labeling Rule, I know that the actives Hydrolyzed DNA, Ectoin & Fucoidan are included at 0.3% or less because Sodium Benzoate is usually included at 0.3% in cosmetic products.

The LATAM Labeling Rule allows me to determine that Serum 1 is a more robust formula than Serum 2, even though it contains exactly the same ingredients, but I can determine that Serum 1 contains a higher percentage of the active ingredients than Serum 2.


The US & EU Problem

In the US and EU, with the 1% Rule, you can’t really tell the difference between the two Serums because the 1% Rule allows the List Of Ingredients to be labeled exactly the same.


A Cautionary Tale

This is a cautionary tale, particularly as it relates to buying Dupes. A Dupe can be created that has exactly the same List Of Ingredients as the Original, but with active ingredients included at substantially reduced amounts compared to the Original.

How would you know the difference? With the 1% Rule in effect in the US and EU, you don’t and you can’t.

As the Founder and Managing Director of Desert In Bloom Cosmetics Lab focusing on the development of new skincare and haircare products in the Science-based, High Performance, Clean, Sustainable market segment for Indie Beauty Brands, Dermatologists & Beauty Entrepreneurs.