Posted by Charity on June 25th, 2008

It is no secret that I am not a proponent of massive government regulations in the name of so-called consumer safety.

For one thing, such regulations are often too cumbersome for small businesses to comply with, limiting consumer choice to large corporations with the resources to comply with the excessive regulation.

For another, I believe that the best way to ensure quality products is to maximize consumer choice. But I guess that goes along with number one.

Here is a perfect example of the problem with excessive regulation – the Food and Drug Administration Globalization Act of 2008.

This bill would, among other things, subject small cosmetics manufacturers – including at-home moms who make soap to sell on the internet *ahem* – to a $2,000 annual registration fee.

Here is a video from the Indie Business Blog explaining the impact this legislation would have on small crafters of soap and other cosmetics, who are often supporting their families with their business revenue, and on consumers that prefer natural or artisan products over cosmetics from multi-national corporate manufacturers.

This is a bad bill that hurts small business under the guise of consumer safety, which will limit consumer access to small-scale, often natural and/or local, products.

Stop the FDA Food and Drug Globalization Act of 2008.

3 Responses to “More Regulation That Hurts Business and Consumer”

  1. I agree with you that the fee is ridiculous, and prohibitive, but on a more general point, you said:
    “It is no secret that I am not a proponent of massive government regulations in the name of so-called consumer safety.”

    Reading a lot of the drivel you write on here, you should have said:
    “It is no secret that I am not a proponent of government regulations in the name of consumer safety, or for the most part, any kind of regulation that would keep someone from making a buck, regardless.”

  2. Question – would those folks selling their soaps at a local farmer’s market or craft fair be subject to the $2K “fee”? Or is it just for those who opt to sell online?

    What about independent Mary Kay and Avon consultants and reps? Would it apply to them?

    Interesting bit of news.

  3. As written, the fee would apply to “any facility engaged in manufacturing, processing, packing, or holding of cosmetics.” “Manufacturing” includes making soap in your kitchen or backyard to sell at a farmers market or craft fair.

    I am not sure if “holding” would include Mary Kay, etc. Perhaps the fee would be paid by the company itself, not the consultant.

    I think there will be some clarification that will exclude small entrepreneurs, though, before this becomes law. But that will only happen if people spread the word and put a stop to this.