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Small Business Owners: Embrace Your Legislative Advocacy Power!

by Donna Maria

For those who may be new here, I am the president of the Indie Beauty Network, a trade organization representing small manufacturers of soaps, cosmetics, candles, fragrances and aromatherapy products. IBN members also make confectionery products and jewelry, and many members provide services to the companies that make products. I am an attorney (though not practicing one at the moment). I am not a lobbyist. I am an award-winning advocate for small businesses, most particularly very small businesses that are bootstrapping incredible companies in industries across the economic spectrum in this country. I follow business issues closely, especially as they pertain to the tiniest ventures in cities and towns nationwide.

This morning, I shared the following commentary at Stacy Malkan’s blog in response to her post about the defeat earlier this week of the Colorado Safe Personal Care Products Act. My comment is now awaiting moderation. After I submitted my comment, I realized that the information I was sharing was so important that it should be at my blog, so I could share it with you directly. If you are a small business owner in any industry, pay close attention. You too must fully embrace your legislative advocacy power.

  1. In response to a comment at the blog from someone who said “small businesses (crafters, Etsy.com folk, etc) were totally freaked out” by the Consumer Safety Improvement Act of 2008 (CPSIA), I said this:

    Small and independent business owners were not a part of the Congressional debate where CPSIA was concerned. We found out about it after it became law, and so all of the activity on their part took place after the fact, at the agency level. You describe CPSIA as imposing safety standards, and you are correct. However, it imposed one-size-fits-all safety standards that are not appropriate or desirable for an entire industry.

    CPSIA was triggered in large part by the actions of multi-billion dollar companies importing toys manufactured in other countries with little to no meaningful lead-based standards. Small and independent companies were not causing the problem that CPSIA sought to alleviate, yet they were treated in the same way as the huge companies.

    The law may be the same, but the impact is not. CPSIA was not and is not carefully tailored to deal with the problem it is supposed to be dealing with. It is a broad brush that did lots of things, some of them good. But it is not without its flaws, and one of them is that tiny companies that were not contributing to the problem were pushed out of the entrepreneurial and small business landscape for no good reason.

  2. In response to a comment that said that the small business owners who testified at the Colorado hearings earlier this week were “pathetic-seeming,” I said this:

    The small and independent business owners I see every day are not “pathetic-seeming.” Instead, they are men and women, mothers and fathers and people just like the rest of us. They are seeking to responsibly provide for themselves and their families, as all of us must do, and they are doing their part to make the world and their communities better places by creating and making available for sale products that enhance millions of people’s live every day.

    Follow members of IBN on Twitter, and instead of pathetic, you’ll see courage, tenacity, purpose, style and the American dream in action. There is nothing pathetic about that. (I added that last part later.)

  3. In response to the comment that the statement that, “small businesses will suffer” is a “line,” I said this:

    Small businesses will suffer is not a line. It is the truth. That fact alone does not mean that new laws are unnecessary or that a new law should not go into effect simply because small businesses on the whole will be adversely impacted financially. That’s only part of the reality.

    It is not unreasonable for the impact of a proposed law on all interested parties to be considered before that law goes into effect. No bill should become law behind a smokescreen. The process should be transparent, and it should give all parties, even the ones you and I disagree with, a chance to be heard. That is what a democracy is all about and those are the principles upon which this nation was founded.

    Small and independent business owners want to produce the best possible products. That means, among other things, that they want to create products that are safe for their customers to use, reasonably priced, aesthetically pleasing and profitable. They want, and rightly so, to be able to do so on a level playing field where everyone has a chance to compete based on his or her own personal and product-based merit and resources.

    Based on the voices that spoke on Monday, it is clear that Colorado made the right choice. Perhaps you come to a different assessment after listening to six hours of hearings, but that is my conclusion. I listened to the entire hearing from start to finish to make sure my comments were fully informed. I applaud the State of Colorado and any other legislature that makes accommodation for all sides of an issue to have a voice.

    I also commented on statements in the blog post itself, as follows:

    1. On loose use of the phrase, “cancer causing,” I said this:

      You say “cancer causing” sort of like it is a suitable catch-all phrase for the efforts behind this bill. While the testimony was clear that some substances may cause harm somewhere and somehow, it was far from clear that the amounts used specifically in cosmetics used by humans rise to that level. Susan Roll of the Colorado Women’s Lobby said this:

      “I wish I could say that there was an abundance of science linking this. … There is a little bit of science. We don’t have an abundance of science. I wish we had it.”

      What that means is there are reasons to be concerned. What it doesn’t mean is that I should be able to pull a cosmetic off the shelf and without even buying it or opening the jar, have a cause of action against the company that made it. That’s one of the things the bill would have allowed me (if I lived in Colorado) to do.

    2. With regard to scientific testimony presented at Monday’s hearing, I said this:

      Dr. Richard Adamson, one of the scientists who testified, said that a woman would have to eat, “3 or 4 tubes of lipstick a day for 70 years before it could become potentially harmful.” Dr. Adamson also said of 1,4-dioxane (which can be used as a foaming agent in cosmetics), one of the substances that would have triggered the law, that a person would have to take 700 baths a day for 70 years in order for the substance to become potentially harmful. One obvious flaw in the science, he said, is that much of the science is based on tests conducted on animals — tests that expose the animals to large amounts of the substances and often through oral ingestion, which of course does not happen with cosmetics.

      More testimony posited that many “natural” (which can also be defined in many ways as we all know) ingredients do in fact contain trace elements of some of the substances targeted by the bill. While a last minute amendment limited the bill to only a handful of substances, instead of a potentially unlimited number as the original bill did, the scientists who testified still said that the science is not there to say that all of them pose a particular hazard in a particular quantity, when used like cosmetics are used.

      I am not a scientist so I will leave the details to the record of the proceedings, but it is very clear that the lawmakers were very uncomfortable with the notion that a person could sue a company and get thousands of dollars in damages based on science that was not there, and also without showing that they were injured by the product at issue.

      These are a few examples of the facts that were brought forth during the over 6-hour hearing. A law must be based on something besides emotion, fear and panic. All of those things are fleeting — they pass from one day to the next. A law must instead be based on the best available facts everyone can collectively find at a given point in time. Those facts are what this entire process is seeking to uncover — so a law based on tangible facts can be passed, not a law based on broad brush strokes that sweep everything under the umbrella of “safe.”

    3. On the roll of the Campaign For Safe Cosmetics, I said this:

      During her testimony, Susan Roll, vice chair of Women’s Lobby of Colorado, testified that she is a founding member of the Campaign For Safe Cosmetics. Her relationship was not further defined in her testimony and no one asked for clarification. However, the fact that she is a founding member of the Campaign does indicate the presence of a relationship and possibly a very close one.

      Professional relationships do not have to be defined by traditional pay checks or consulting fees in order for them to be relevant. I think it is disingenuous to say that it was the Colorado Women’s Lobby who sponsored the bill, and behave sort of like the Campaign is a disinterested party just standing by letting the chips fall where they may.

    4. On the FDA, I said this:

      You and everyone else in the universe is correct that FDA is under-funded. They admit it and we know it. However, it is Congress that gives them the authority (or not) to do what they do, and it is Congress that appropriates funds so they can carry out their mission.

      As you know, pending now in the House Energy & Commerce Committee is the FDA Globalization Act of 2009, which if passed, will change how cosmetics are regulated in this country. We all know that that bill is going to change dramatically in its next revision, and more revisions can be suggested going forward to cover issues not covered in that bill. It seems odd to me that the Colorado lawmakers didn’t seem to know that the federal bill exists. It also seems odd that any advocacy group would seek to change 50 separate state laws rather than change a federal one that would apply equally to all parties.

      Cosmetics are sold all over this country. If I make lip balm in South Carolina, does it make sense that I should have to comply with 50 laws and a federal one too, in order to sell that product to customers nationwide? By that logic, I’d have to keep a changing list of substances for 50 states, probably change my labeling on each tube 50 times and maybe be subject to 50 different types of lawsuits by millions of people in all of the United States every time I sold a $6.00 one-quarter ounce tube of lip balm made with olive oil and beeswax.

      No industry can operate in such a stifling environment, and consumers would not be able to buy the products they enjoy if that became the state of the law. I say all this to say, why not continue to work diligently and in a public way (as is being done with states) with Congress, and encourage states to work with Congress, to pass new laws that would apply nationwide?

    5. In closing, I said this:

      In closing, I would like to say that I am encouraged to read your comments at a former Compact signer’s blog that you see some common ground for small companies and the Campaign to pursue. It is my hope that that common ground exists, and that we can uncover and capitalize on it for the benefit of consumers and cosmetics companies nationwide. I look forward to working with you to do that.

    The dialog continues.

    Question: What do you think of the ideas and commentary here? Do you agree? Disagree? What would you change or add? How are you embracing your legislative advocacy power in your industry? Are you a change agent? Are you leading the charge? Burying your head in the sand? Letting others do the heavy lifting for you?

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    posted on March 4, 2010 ·

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  • D'Anna Catterson

    Thank you for responding to CFSC's Stacy Malkan’s blog. While her contradicting statements in the blog were a little stunning, they were not surprising. The way the CFSC conducts itself will continue to alienate small business owners like myself across the country, not just in Colorado.

  • Theresa

    Is a transcript available yet? Thanks so much for your insight!!!

  • http://www.notjustaprettyface.org/ Stacy Malkan

    Donna,
    Yes I agree there is common ground between small businesses and the environmental health movement. The Campaign for Safe Cosmetics works closely with many small business owners who are on the leading edge of innovation, creating the next generation of truly safe, wonderful, non-toxic products. These small companies are the vanguard of the new green economy that will continue to boom in the years ahead, and which is greatly aided by the work of environmental health advocates who work hard every day to educate the public about the dangers of toxic chemicals, and about the reality of what’s in conventional products that claim to be “pure” and “healthy.”

    But it’s time to step away from the rhetoric. Regarding Dr. Adamson, he is paid by the trade association to repeat their talking points which is exactly what he did at the hearing. The comments were, frankly, laughable. A person would have to eat 3-4 tubes of lipstick a day for 70 years, or take 700 baths? There is no science to back this up. As you know, studies about the rate of absorption of cosmetic chemicals are not required of industry and not conducted by FDA. On the 1,4 dioxane example: the state of California lists the chemical as “known to cause cancer” and has taken action against several personal care products companies for hazardous levels of 1,4 dioxane (based on one bath, not 700).

    As the endocrinologist David Norris testified at the hearing, the old adage of the “dose makes the poison” is no longer relevant. The timing of the dose is of critical importance, and even very tiny doses of endocrine disrupting chemicals can wreak havoc. Fish are changing genders in Colorado waterways due to exposure to hormones, including hormone-disrupting cosmetic chemicals. As he testified, the endocrine systems of fish, humans, rodents and other animals have similar mechanisms of action – so yes the animal studies are relevant for predicting human health effects. The same types of gender-bender health problems seen in fish and lab animals are also showing up in the human population.

    For more on this topic, see these two recent pieces by Nicholas Kristof in the New York Times. http://nyti.ms/97XfeJ and http://nyti.ms/bg0ra5. “Concern about toxins in the environment used to be a fringe view. But alarm has moved into the medical mainstream. Toxicologists, endocrinologists and oncologists seem to be the most concerned,” Kristof writes.

    So please, as we try to find common ground, let’s leave behind the trade association rhetoric. As Stephenie pointed out, the Personal Care Products Council is doing the small independent business community no favor by backing and encouraging its efforts to oppose legislation. I do agree with you that good policy should include concessions to help small businesses, and I also strongly believe that good policy will help small businesses. In a market where consumers are less confused and more informed about the toxic ingredients in cosmetics, the benefit will go to the companies who are doing the right thing and making the best products.

    Stacy

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  • http://www.blog.botanicabasics.com/ SL Meyer

    Dear Donna Maria, for your eloquent and point by point rebuttal,
    a rose to you.

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    I have tried to find a transcript but it seems as though they are not available for free. I called Rep. Primavera's office several times to ask but no one has returned my call yet.

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    Stacy:

    Thank you for your comment. I'm glad to know that you favor consideration
    for small business owners.

    The Campaign website currently contains a petition inviting people to sign on to Congress “empowering FDA to regulate cosmetics and ingredients before they are sold.” I know you work closely as you say with small business owners. Perhaps this has been discussed with your Compact signers via email or at one of your in-person meetings. I tried to attend one last year and I was told (by Lisa Archer) that I was not welcome there. I was very disappointed, especially since so many of my members are or were Compact signers. I figured if we worked with the same people to accomplish the same goals, why was I not welcome?

    In any event, what do you mean by regulating before a product is sold? Does that mean each product should be tested before sold? How many times? By whom? For what? Five ingredients? Fifty? The petition is so general as to mean little without knowing the details of how such a program would work.

    I look forward to talking with you next week.

  • http://apito.info/wordpress Sue Apito

    dM, you know how much I respect you so I hope you take my critique as well intentioned. In an earlier post on your blog you state “provisions should be made to support businesses, particularly small businesses, in meeting federal regulations for safer products.” And I agree.

    The first step should be to educate and inform those small businesses of exactly what those federal regulations actually are.You state that “I know that some large manufacturers with billions of dollars in annual sales and millions of customers worldwide are using questionable ingredients in their products. This is a problem that the newly introduced FDA Globalization Act of 2009: HR-759 should address. However, and this is important, it is not the small, artisan, Indie and handmade companies that are using these unsafe ingredients and therefore, any new law must be carefully tailored to ensure that small companies are not regulated in the same way that larger ones are.”

    The reality is, your statement that the small, artisan, Indie and handmade companies are not using these exact same ingredients is not accurate. Spend some time on some of the social networkings sites where people are sharing advice and recipes. The small, artisan formulators are buying and using the exact same chemicals found in the products made by the large formulators. These ingredients include the very synthetic preservatives many large corporations are actually phasing out due to consumer concern.

    What potentially makes the large manufacturers products potentially even safer than the small manufacturers; testing! The FDA has requirements for microbial pathogens, ask the average small crafter and I guarantee…too many have no idea what those requirements are and they have no idea whether or not their products fall within the safe levels. These tests are not prohibitively expensive and there is no legitimate excuse for selling products that have never been tested for pathogens. Being a formuator is a profession, and like most professions there are costs for doing business. I feel like some of your comments are empowering people to take shortcuts, and not spend money on the basic things that should be part of even the smallest home formulator's costs of doing business.

    If the safety of a product has not been established, the FDA requires a statement of such on the label…the size of the manufacturers business does not exempt the small manufacturer from at the very least, displaying this mandatory statement on the label. But you can go to any farmers market, ETSY store or online shop and purchase products manufacturered by small, artisan, Indie and handmade companies that are untested, and missing this notice. And worst of all…the manufacturer doesn't even realize it is required.

    Another thing the large manufacturers do is conduct a Minimum Inhibitory Concentration Test (MIC Test). If you do not run a MIC test, then the manufacturer is just guessing whether or not their preservative is working. Too often, the small crafter asks advice of other small crafters in online social networking sites, and then adds the maximum amount of synthetic preservative to their product. This does not necessarily create a safely preserved product, but it makes the crafter feel as if their product “must” be safe. In many cases, this exposes their customers to many more potentially toxic ingredients than necessary. Again, these tests are not prohibitively expensive. Wishful thinking should have no part in manufacturing a product that customers are applying to the largest organ of the body, the skin. In my opinion, if a small business cannot afford to test their products in order to use the least amount of preservative necessary, then they should consider another profession.

    You have stated “But companies that are using safe ingredients should not be required to test for ingredients that they know they are not using in the first place.” I can only say that after reading posts from thousands of small, artisan, Indie and handmade cosmetics makers…not only do many of them not know what ingredients are in their products, they have no incentive to learn. People find a soap recipe, buy the ingredients, and in two weeks are selling their “eczema relief” soap, their “all-natural essential oil of strawberry scented” lotion, etc. The battle…and it is a battle…for safer cosmetics should not include a free pass for a company simply because of it's size.

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    Hi Sue,

    Let's take one issue at a time in your post.

    One: my statement that it's not the little companies using the “unsafe” ingredients was not meant to capture the behavior of every single person in the world. I am sure there are people on forums doing all kinds of things, some of them questionable. That's the case in any industry at any point in time.

    But when I made my statement, I was speaking as the president of a trade organization with people who are more serious than that about their businesses. They pay annual dues to connect with me and with each other so they can kn ow what the laws are and learn how to apply them together. They pay annual premiums for products liability insurance. I offer regular training sessions covering all kinds of areas that are pertinent to cosmetics companies, including regulatory review sessions. I know there are many people who will not join IBN despite the resources offered, and who further, will not educate themselves. I believe there are ways to put an end to questionable activities without unduly burdening legitimate small businesses, and I hope those ways can be found through the legislative advocacy process.

    In addition, by and large, my members are using sustainable ingredients in far larger proportions than the the conglomerates. I know this simply by reading ingredient labels, which list ingredients in descending order of prominence in a product. I have placed my members's lotion or lip balm against huge companies and seen big differences in the quantity of the natural, more sustainable ingredients. I am not saying that no small companies use the synthetics your comment speaks of — of course not. But I am saying that, based on my experience with the small businesses I work with, the number of natural ingredients used by them far exceeds the number of them used in products made by huge companies.

    Two: Testing is a big question and I don't know precisely what the answer is for crafters. I speak for businesses, and I do know that it would be unreasonable and unduly burdensome to require a small business to test each and every product for everything that it could possibly be tested for. And if the federal government required that, and then a dozen states also required their own version of testing, the entire industry would be thrown into a tailspin quickly. Further defining what “testing” means will help clarify when application of the “has not been determined” language you refer to in your comment is triggered. But again, if we do have standards, we cannot have 51 separate ones (each state, the District of Columbia and federal). That's not workable.

    Third: I am not advocating for a “free pass.” I am advocating for a process, established through open rulemaking, that allows FDA to focus its enforcement efforts on products with the greatest risk and the largest exposure. This is not a new notion in the law, especially where ingredients are concerned.

    For example, if you only use certain listed ingredients in an insect repellent product, you do not have to comply with certain registration requirements under the Federal Insecticide, Fungicide and Rodenticide Act. It is the smallest companies that benefit from that different standard because they, in large numbers, are the ones using only essential oils in their insect repellents.

    Again, I don't have all of the answers, but I think we can look to precedent in other consumer product areas to find ways to create concessions for small businesses so that consumers can be safe and small businesses can be regulated proportionate to their risk in the market place and are not unduly burdened.

    I look forward to continuing the dialogue.

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  • http://www.my-diy.ws/ Sue Apito

    I looked at some of the twitter posts in this topic, and found a perfect example of a company whose cosmetic products are actually OTC Drugs, according to the FDA labeling laws (i.e. cleansers sold as acne treatments).

    “FDA has published monographs, or rules, for a number of OTC drug categories. These monographs, which are published in the Federal Register, state requirements for categories of non-prescription drugs, such as what ingredients may be used and for what intended use. Among the many non-prescription drug categories covered by OTC monographs are acne medications.”

    When small companies don't even bother to follow the existing FDA laws, the future of the industry being, for all intents and purposes, self-regulated, are at risk. Trust is lost every time someone breaks the laws.

    What I'd love to see are the existing laws hilighted and examined and every INDIE member, every Soap Guild Member, Botanical Association Member, told, point blank…make these claims and you are breaking the law.

    If you don't test…and most don't…then you are REQUIRED BY LAW to disclose that on your labels. Consumer Education and education of the small businesses making these products…then maybe the safety of these products won't be as big a concern.

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    Sue: You make some good points. However, in terms of enforcement and testing, it would be unfair to single out small businesses for treatment that is different from the way the rest of the industry is treated.

    Educational resources are available and I continue to encourage my members to take advantage of the ones I provide and/or the ones provided by others. By and large, I think they do. And you are right that the ones who do not are thinking short term and not long term, and that's never a good business practice.

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    Thank you for being here.

  • http://www.my-diy.ws/ Sue Apito

    “it would be unfair to single out small businesses for treatment that is different from the way the rest of the industry is treated.”

    I agree with that, 100%

    My “pet peeves” are #1, synthetic fragrances being passed off as natural or “safe” when they are almost all made from non-renewable petrochemicals and contain extremely toxic ingredients – and – #2, cosmetic and soap companies using the word “organic” in their company name, or product description, when their products do not meet with anyone's standards for organic; not the USDA or any other countries standards. It's false and misleading labeling and the consumer is the victim.

    Many believe synthetic fragrances are as toxic, or more so, than cigarette smoke.

    Rather than making big generalizations about creating safer cosmetics with nothing scientific to back the concern, like the situation in Colorado, the hazards of synthetic fragrance and inforcing limits on their use would be a HUGE step forward toward safer soaps and cosmetics.

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    Sue:

    The labeling issues you raise are very important. In fact, Dr. Bronner sued several huge cosmetics companies in 2008 accusing them of using the word “organic” in an inappropriate and misleading way. I'm not sure of the status of that case, but it shows that others are frustrated.

    “Natural” is not a regulated term and I'm not convinced it ever could be effectively regulated since there is nothing on earth that does not have some “natural” component. You may have to trace it back further for some substances than for others, but nothing can exist on earth without having some component that at some point first existed on earth in a “spontaneous” way.

    Fragrances will never go away. Consumers will always want to smell things that do not exist in nature: pomegranate, fig, etc. I know many people are physically impacted by fragrances and I'm not quite sure how the stakeholders will work to minimize that impact, but forcing cosmetics companies to not have a way to give their customers what they want in a scent is not going to be the answer.

    I agree with you that Colorado had it wrong, and I'm glad people stood up to say so. I and my team are working with others toward a solution that would protect consumers while also giving them the options they want without unduly burdening or singling out small companies.

    Thanks for your input!

  • Susan Apito

    ANAHEIM, CA – On Friday March 12, 2010, the Organic Consumers Association (OCA), …announced the details of an agreement from Procter and Gamble (P&G) to reformulate 18 products from its top-selling Herbal Essences brand to reduce levels of the carcinogenic petrochemical 1,4-dioxane.
    http://www.organicconsumers.org/bodycare/index.cfm

    If P&G can eliminate 1,4-dioxane I simply do not understand why ANYONE is fighting for the right for small, Indie, or any other genre of cosmetics manufacturers to be allowed to continue to manufacture products that contain it…

  • http://www.apito.info/wordpress Sue Sawhill Apito

    Four weeks ago this topic – safer cosmetics – was front and center, high drama. Multiple “Safer Cosmetics the Right Way” pages were started on Facebook. And as far as I can see…not a single thing has been done to actually work toward “safer cosmetics the right way”, or any way for that matter. Donna Maria, can you update all of us on what efforts have been made by Indie Members toward safer cosmetics? I attended a talk given by Mia Davis of the Campaign for Safe Cosmetics, in Providence, RI a few weeks ago, not a single Indie Member seemed to have attended.

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    Sue: I have and will continue to share public updates when appropriate in the Advocacy Topic section at this blog, and elsewhere . Please subscribe if you'd like to know when I post something new. As for what individual companies are doing, it's best to contact them individually.

  • http://www.apito.info/wordpress Sue Sawhill Apito

    Thanks Donna Maria. I thought I was subscribed but maybe not…I'm pretty much lost on this website to be honest! :^}

    I am more familiar with Facebook and I watch each and every one of the “Safer Cosmetics” facebook pages and I don't see a single thing being done at all. It seems like the only momentum is when someone thinks their business might be in jeopardy by legislation about cosmetic ingredients. So I may be missing something.

    I sprained my ankle at the gym ( yeah… the gym!) and so I am in an air cast so I will let you know if I get a new website up about this. Facebook is too limiting as far as space for my verbose-ness!

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