Emmanual Fritsch – Global Compliance

On this episode of RadioAMB guest host, Aliesh Pierce delves into the realm of regulation and guidelines for brands looking to develop and grow by sitting down with Emmanual Fritsch of EcoMundo. Want to know what the biggest obstacles are to bringing your brand to market? Then you will not want to miss this in-depth discussion, that covers the how and why of regulation and how to ensure compliance both domestically and internationally.
What does it take for a brand to go international? Aliesh and Emmanuel discuss international distribution and how it requires a different structure than the US. Ever thought about online purchases and what you can and can’t do when it comes to cross-border selling? Find out if it’s actually legal.
Listen in as Aliesh and Emmanuel pull back the curtain to see just what companies and emerging brands need to be aware of before venturing into new and exciting territories all over the globe! You might hear something pretty important.
Transcript:
broadcasting from Manhattan Beach and
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object to the views products or topics
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their guests we suggest you always
consult with your own personal medical
financial or legal adviser hello welcome
to radio AM B where we think pretty is
pretty important for all things in
beauty radio a and B is designed for
those who want to live a long and
vibrant life my name is a leash Pierce
and I’m sitting in for Patti Schmucker
my friend my mentor and my boss and I am
the brand strategist for performance
branding services which is the
consulting arm of american-made beauty
I’m a published textbook author licensed
aesthetician and veteran celebrity
makeup artist who has been in the
industry in one capacity or another for
almost 40 years radiates radio a and B
which stands for american-made Beauty is
where we tell the secrets behind the
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program sponsor today is american-made
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Beauty comm to shop for products and
read more about the interviews you hear
on radio amv and if you have a brand go
to american-made Beauty comm to learn
more about how to reach domestic and
international customers my guest today
is a Emanuel Fresh director of North
American operations for eco mundo a
group of scientific experts that offer
guidance to cosmetics companies
navigating regulatory issues will talk
more about eco mundo and/or
zatia mission a little later in the show
but I want to first welcome Emmanuel
hello Lee thanks for having me thank you
for taking the time out to talk to us
today you know with such renewed
interest in cosmetics we’re seeing
several startup beauty brands emerging
and I I know that every makeup artist I
know would love to develop their own
brand I work with teams that helped
bring brand to life so I really
understand the passion and the drive
that it takes for these founders to
pursue their dreams and launch their
products but what I’m saying is that
sometimes this excitement is causing
them to act blindly to act prematurely
by launching a brand a little too early
launching a brand and growing growing it
is really no small feat and it requires
a lot of groundwork and at the core of
that work is regulation compliance so I
want to dive into this with our guests
today during our first feature will talk
to emmanuel about regulation and how to
ensure compliance domestically and
internationally in our second segment
we’ll address international distribution
and how it requires a different
structure than that of the US during the
third segment we’ll talk about online
purchases and cross-border selling is it
legal finally in our last segment we’ll
talk to emmanuel about his role in
fulfilling eco mundos mission so I want
to jump right in at a and B we have
encountered a lot of brands that are
seeking distribution overseas a lot of
indie brands I just wondering if you can
help us outline the steps that are
involved in registering a brand overseas
so like you said regulatory compliance
is a big step for any indeed brand or
to preneur that is looking to extend
into new markets and the realities it’s
often a step that is overlooked at and
and a really important one whether you
sell in boutiques or whether you have an
online store so the typical process for
ensuring that your product cosmetic
finished product is compliant and and
this is going to be really important
when you want to sell overseas is to
ensure that you have done basically your
homework in terms of ensuring that the
formula that des claims that you label
will respect local requirements and
different countries have different
requirements obviously and it’s really
important to understand the requirements
that may vary depending on each
jurisdiction or each country you want to
sell to and adapt into that and
incorporate those those results and and
those observations and ensure that you
can plan this ahead and by planning I
also mean to budget ahead yes so this is
something that should be written into
the initial business plan before the
line is even considering launching there
this idea of growing the brand to a
certain point so that it is ready to
ready for export and that that plant
export plan includes all of these
additional compliance considerations
exactly and as I usually say to our to
our customers when they asked I said you
know yes there is a cost to compliance
but what you really don’t want to face
is the cost of non-compliance yeah it’s
really important to incorporate
compliance into your business plan and
and build also a timeline before you’re
launching and you mentioned the
excitement of any brand when they want
to go into Nash
on that that’s normal that’s very
exciting to you know seek new new new
customers new markets but you really
want to ensure you do things right so by
having a whether it’s a consultant or
whether it’s somebody that can help you
in house or is knowledgeable about
specific regulations that are in place
in various countries this will help you
save a lot of time and possibly a lot of
money to avoid any any issues any case
of non-compliance that could be really
damaged or forward for Brandon for for
your marketing plan right and and one of
the things that I find is most
surprising to the brand is first of
these new brands is that when they’re
seeking export they’re not familiar with
the idea of registration rather than
some sort of certification the can you
talk a little bit about appointing a
responsible party to handle operations
in the country of distribution yeah for
sure
so most most countries first of all most
countries have a regulation about
cosmetics or personal care products and
most countries have a registration step
somewhere in the process whether it’s a
voluntary registration or if it’s a
mandatory one I can give you the example
of the EU cosmetic regulation that has a
mandatory registration as part of
compliance and we can possibly talk in
more details about that it’s called a CP
NT but I mean every country including
the US Canada and a variety of other
other places have at some point a
responsible party or a necessary
registration whether online or to a
national authority before you can
actually place the product on the market
so the
a party or responsible person depending
on the countries but usually is either
physical individual or a legal entity a
company and usually each has to be based
in the country where you want to sell so
we need to have an affiliate a physical
presence in the country where you want
to sell and the role of that responsible
person while it can vary depending on
each country again but usually their
role is to ensure the compliance of your
product before it is placed on the
market and in some cases it is not just
ensuring compliance in terms of you know
labels making sure you do not use any
septic claims reviewing your formula and
the ingredients but sometimes it goes
beyond that and includes ensuring the
safety of your product ensuring that the
product is really safe for the end-users
for the consumer this is the case in
Europe for example where you need to
really build a thorough report on a
cosmetic safety before you can even
register and start selling your product
right so I’m always encountering you
know natural natural Easter’s who love
making their own products and really I’m
sure have wonderful ingredients but
they’re making it in their kitchen
they’re looking at distribution and this
idea of really growing the brand to be a
lucrative business is kind of
overwhelming the idea so when it comes
to safety can you talk about some of the
tests that are then required for I know
you’re responsible for compliance of
Canada US and Europe how does that vary
between these three countries yeah so
for example by ensuring and user safety
in Europe we
a safety assessment that is that is
drafted that is done under the
supervision of a safety assessor and
this is a mandatory requirement one you
want to to sell to any other 31
countries regulated under the EU
Cosmetics regulation and the role really
is to so there’s a variety of
information that we collect working both
with the brand and also sometimes with
the contract manufacturer or the raw
material suppliers collecting all the
data that will help us assess the safety
of the final product of the final
composition and how we do that is by
collecting data that we get on each raw
material and each ingredients such as
asking for the material safety data
sheet of the other raw material asking
for a certificate of analysis that have
been performed on a specific ingredients
asking for any technical data sheet
physical chemical characteristics of the
ingredients so that at the very end just
like you you would do for a recipe in
your kitchen so that we have a
big-picture overview and understanding
of every component of the formula that
will be exposed to the human being and
more tests may be necessary depending on
each ingredient at each product but this
is really the basic principle at least
for Europe now in Canada there are also
on you know tests that can be performed
to assess the safety of the product when
you when you register and declare to
Health Canada authorities a cosmetic
product just like you have at DEA
guidelines under the Food and Drug Act
when you want to sell a cosmetic and as
a manufacturer or as a distributor of
your product in the United States you
have the responsibility to
ensure that your product is safe for the
consumer so the main difference will be
in the interpretation if you will and
the maybe the order of appearance of
where that safety assessment comes in in
Europe it’s really really important for
for us brands to understand this is
something that it needs to be done prior
selling and going on to the market in
other jurisdiction you have a
responsibility to ensure that it’s safe
but there isn’t really a formal step or
formal report that will be asked that
the brand will be asked to provide in
order to really assert that the product
here meets all characteristics you know
am I can it I’m sorry I missed the last
part so as I was saying that depending
each country has a different way of
assessing the safety of the product it’s
really important to understand one key
difference in Europe is that the safety
assessment is a very very thorough step
that is part of what we call the product
information file the pif and this is a
safety report that is conducted under
the supervision of a safety assessment
who usually is a PhD in toxicology a
doctor of pharmacy somebody who has a
really you know diploma but also core
expertise in analyzing the chemical
physical characteristics of each
ingredient and at the very end taking
you know personal responsibility putting
this stamp and saying yes I have
reviewed the product and I can certify
that this product used in the way that
in the precautions of use that are
claimed by the company and by the
manufacturer is safe for the end-user
yes you know as an educator for some
emerging brands I’ve had this experience
of having to try to back
tract and you know a lot of the brands
of course don’t own their own formulas
they’re going to contract manufacturers
but if this these documents aren’t
considered at the inception of the brand
then you find brand owners find
themselves kind of scrambling going back
to the formulator trying to get
information on the raw materials used
because that information wasn’t often
secured before the brand launched so
this is just another area of
consideration for for these one
wonderful new emerging brands that I’m
seeing when it comes to a responsible
party I want to backtrack just a bit
what are your suggestions I have heard
conversations I’ll say around using your
distributor as a responsible party or an
attorney what would be your
recommendation I mean of course the the
services that we are kino a regulatory
consulting firm that that’s part of
things that we do and offer to to
customers but I want to be really
transparent and and say upfront that you
know technically a responsible party can
be yes it can be a physical person you
could actually have you know John
Smith’s acting as your responsible party
as long as John is based in how the
physical presence a base in the country
that or region that you want to sell to
but you need to enter that there are you
know advantages and disadvantages with
each option basically it’s not a
physical person in Europe for example
the name of your responsible party will
be on will appear on your path on your
packaging that name and address so we
hope that John will will have a very
successful career and life but you know
if anything would happen to John
unfortunately for the grand that have
chosen to work with a physical person
versus illegal
or company if you will it’s obviously
more stable if you have a legal entity a
company acting for you as your
responsible person because you are
covered over time and if there’s
anything happen for bit that would
happen to that person you do not need to
update thousands of labels that are
already printed that’s an exact on Crete
example as far as using your distributor
or importer as a responsible party
that’s also question that we get a lot
um and I’ll I’ll be totally honest if
you have a good relationship with a
local distributor you met with them you
did you know you traveled and you agreed
to the way you wanted to do business
together and they are at you know
offering you to be your responsible
party and take responsibility of your
compliance and the security the safety
of your product what you need to
understand is that by doing that you are
doing two things you are actually mixing
the regulatory side of your business
with the pure as you want dollar or a
business business side you know you have
you will have a negotiation with your
distributor you will have a margin you
will negotiate you know what the price
point will be and so that’s something
I’m asking usually you know or in brands
I’m asking them gee you really wants to
share confidential information with your
distributor and buy confidential
information that includes the formula of
your product so if you have develop your
own phone line you own it as part of a
safety assessment you will likely have
to share the exact recipe of your maybe
secret trade ingredients or she could
trade formula with a third party your
distributor who potentially is also an
entity that you’ll be discussing on
prices and and separate share of
and and and and profits so you want to
be very careful with that
so personally I don’t advise that but
yes if you ask you can can can this be
an option yes again you know this
question came up with one of our clients
because they they actually appointed an
individual and then kind of fell out of
good graces with that individual and so
it adversely affected their entire
company so this is just yet another
thing to consider as we advise these
emerging brands on on strengthening
their international presence so I want
to take a break here
amen well just hold one one second when
we come back we will discuss more issues
that the consumer or the the individual
brands need to consider when building a
brand for international export you are
listening to radio AM B we’ll be right
back
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Radio AM be on healthy life net by
mallesh Pierce filling in for Patti
Schmucker and our guest is Emanuel fresh
in this segment I want to drive home the
importance of understanding claims a
brand is allowed to make in each market
here of late with american-made Beauty
we’ve had a lot of inquiries from indie
brands interesting and selling in the EU
one of the examples that comes to mind
is an independent brand self-funded they
purchased all of their own formulas so
they own their formulas they’re doing
quite well in the u.s. picking up
distribution and they got a little nod
from Spain they sent over a few samples
this one store in Spain loved it and the
founder thought she would kind of jump
all of the formalities and just sent her
products ahead since she had an account
there willing to to sell her products of
course what happens what do you think
happened Emmanuel the the products were
stopped at the border yes and now she’s
having an issue
she’s been flagged so I wanted to just
talk to you a little a little bit so
that we can share a word of caution
what can brands expect if they attempt
to cut quarters to distribute jump start
their distribution overseas
yeah so that’s something we get asked a
lot and and we have every every week
every month we have examples of either
our own customers that you know forgot
$2 on two new products and because
they’re so excited they have a huge
marketing plan and they they forget
about local local requirements or they
forget to reprint the exact labeling
mandatory mentioned on their label and
so they have a case of non-compliance
and their product ends up being blocked
at customs in in a specific country yeah
so two things if if you have a
responsible party obviously that that
person that company is responsible for
your compliance so reminder to all all
brand owners that when they want to
expand into new countries the first I
would say thing they should do is really
to you know call their regulatory
consulting partner and and just you know
explain what they want to do include
them in the discussion around their
their expansion abroad and make sure
that they have everything in check when
it comes to local labeling requirements
I’ll give you an example with Europe
this is this often comes as a surprise
for North American customers whether in
u.s. or Canada that in Europe we have 31
countries regulated under the same
cosmetic cosmetic regulation however we
have over 26 different languages and so
by saying you somebody is compliant by
saying your product is compliant does
not actually mean that it you do not
need to translate your label into the
language of your end consumer so that’s
why it’s really important when you sell
to Spain Italy Greece Sweden and and I
could cite a number of other
trees that you check before you you use
you ship your products that you check
that you have done your homework and
that your label is translated Sweden for
example you would need to have a
description of your of your label in
those Swedish and Finnish for friends
everything needs to be in French Spain
there are mandatory mentions compulsory
mentions on the label that needs to be
translated into Spanish so that’s that’s
one example of a case where
non-compliance could be a flag say a
local custom authority but sometimes you
have more serious cases non-compliant
let’s say you you ship a formula and you
just added a new product and you forgot
to how the formula reviewed have the
safety assessment done then you start
technically shipping a product that
hasn’t been certified has it been
registered so that’s a clear if you want
case of non-compliance that could
potentially have more serious effects
and the way non-compliance is enforced
will vary in each country even in Europe
if you have one cosmetic regulation for
all 31 countries you still have a local
enforcement that varies depending on
where your products are stopped so
options can you know vary
again depending on who you on the other
end sometimes it’s somebody you know
nice you can discuss and you can ask
them okay can you give me a report apply
my product is not compliant they will
they will tell you they might tell you
also what needs to be done for your
product to be clear mm-hmm I’ve had an
example with the u.s. brand and their
product were blocked in in Marseilles
that’s in the South of France and they
had some they had repainted a number of
batch of labels and products and ships
and forgot to include compulsory
mentions such as echo windows name honor
and so the products were blocked and
fortunately we had somebody on the other
end
at customs in France that were really
understanding and that gave us the
option to not ship back the product or
not you know issue a fine to the company
but give us the option locally working
with their local distributor to a place
stickers on on each individual product
in order to comply with the European
cosmetic regulation that’s there are
ways there are ways of if you want up
mitigating the risk but if you have the
luxury of not exposing yourself to to
serious risk in the first place that
isn’t getting better right that and that
story ended well I had a recent
conversation with another indie brand
already selling out of Canada already
selling in the EU but as you mentioned
they added a few new SKUs and hadn’t
gone through the proper steps for
actually they keep getting blocked
because they don’t have their SDS sheets
their safety data sheets for those new
products so they are experiencing these
stops and starts kind of getting through
and then realizing oh no we messed up
again so it’s a very interesting process
when when there’s what when you’re
operating without the support of someone
who knows the terrain yes go ahead I’m
so sorry we also have cases of brands
that sell through either eBay or Amazon
yes other online selling platforms and
you know usually you again you have
basically it’s a worldwide marketplace
once you’re listed on those sites yes
and you know I want to I want to
interrupt you just a moment let’s take a
moment to discuss that in our next
segment I definitely want to touch on
some of the issues that we’re seeing
popping up with cross border selling I
know that again ensuring you have a
responsible party who is aware of all of
these
the ins and outs will help you help
these brands navigate the terrain so
just hold on a second we are going to
take another quick break and when we
return we will talk about cross-border
selling so stay with us
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healthy life net okay welcome back you
are listening to Radio AM be on healthy
life net I’m your host Alicia Pierce our
guest is Emanuel Frisch and in this
segment we’re going to explore how to
remain compliant when selling online we
hear a lot about new brands selling
their products online to consumers
overseas so Emanuel can you tell us
aside from needing to consider the cost
of shipping their product to the
consumer which is time-consuming and can
be very costly um a lot of these brands
I’m finding are trying to do that on
their own what should these brand owners
be aware of what type of problems could
they run into selling their products
overseas online yes sure so typically
when you want to sell to a new a new
marketplace you it’s often the first
time your the end consumer will be
exposed to your new product and you I
mean the brand may have a specific
communications or marketing plan and
have developed a narrative around the
claims and the effects that the product
the finished cosmetic is is intended to
do and so another step come with
the compliance that is really critical
is to ensure that the claims that you
will be using will be always you know
truthful and will be can be supported by
scientific evidence of that can be you
know supported by different means
including experimental studies including
a consumer perception test a clinical
test or any scientific published
information publications or market data
that would be available to support
something that you want to have a say
about your product and so the claims are
more than just text it’s really they can
be a trademark they can be a picture
they can be any sign that would imply
either explicitly or implicitly that
your product has a specific function or
characteristic that differentiates your
product from the one of your competitors
so this is really important for a brand
to ensure that they are not
over-promising basically we want to
avoid deceptive claims and
over-promising claims if you ask I mean
dermatologists they will they will tell
you the patients that come in in their
office often obviously they may have
some some you know sensitive skin issues
that they are consulting about that they
are also often coming with examples of
products that they’re using and they’re
saying well I bought this product
basically based on on a claim that the
company was making or a word that I read
on the label and now I’m witnessing
those those side effects and I don’t
understand I thought you know there were
no fragrance or I thought the the
product which was safe for my for my use
and so they don’t understand so that’s
really the role of compliance around
claims is really to ensure that there
will not be any any over-promising
statements or anything that cannot be
backed by science
right so in my concern again another
brand I spoke with hair care brand
shipping a few things to the EU without
really going through the proper steps my
concern is if that if there are adverse
reactions then that then puts a red flag
for this company it could put could
potentially be an issue down the line
blocking them from actually entering the
cult the country legally and through the
proper channels for the consumer who is
getting excited about this new product
aside from adverse reactions are there
any other side effects that you are
downsides that you might see for the
consumer so as a consumer you you know
we we live in a in a globalized economy
we have now we do most of our shopping
online and at the same time companies
are now sourcing ingredients from all
over the world and it gets one more
complex as a consumer to really get down
to the bottom of the information about
what the product that you are find what
it can change in terms of ingredients in
terms of origin of those ingredients and
in terms of over time when I use that
product am I going to develop any any
any side effects adverse to that
reaction so and so that’s why it’s
important for brands to understand the
the principle behind the review of
claims it’s not just you know to have a
fair market for every brand it’s also
and and I would say more importantly for
the end-user to make a really
really safe decision-making when when
they choose to buy your products and
know exactly what they are buying so
just as as if you like me and you like
to read labels when you do you at the
grocery store then you review the back
of the labels and you try to start you
know how many ingredients in what order
of predominance the ingredients come in
how much sodium salt you know fat and
all of that but it’s a little bit the
same thing in cosmetic products you you
want to be sure that if you have if you
use claims like organic 100% organic or
if you use a claim your product is free
of a specific ingredients it needs to be
science-based and it needs to be
truthful it’s not something that is that
you can say just for the sake of having
a sort of you know different narratives
and and and making an interesting story
right yes yeah exactly I’d you know I’ve
brought to mind right away a brand that
I was familiar with using grapeseed
extract saying that that was their
preservative so that it’s paraben free
but not including the information from
the raw materials supplier stating that
that grapeseed extract actually had
parabens in it to maintain freshness so
those little subtleties I guess start to
become big issues when your brand is
overreaching first become compliant
domestically understand and build into
your plan what’s required they with the
selling overseas though sorry selling
online my concern with the brand is that
they’re also not understanding from
marketing perspective not really
understanding the psychographics of that
consumer what their real needs are and
how to reach them and it would seem
wiser to me to say let’s hold off and
build some expectation while
we go through the proper channels rather
than you know jumping the gun and
shipping products off prematurely right
now let’s see I you know as I said to
you I I could talk to you for hours I
would love to just sit in your office
and listen in on how you advise your
your your clients right now though we’re
going to take another break and when we
return
immanuel I’d like to ask you more about
your role in fulfilling eco Monday eco
mundos eco friendly mission and also
learn a bit more about the reach
consultancy services and so a wonderful
stay with us and we’ll be right back
[Music]
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[Music]
welcome back you’re listening to radio
am beyond healthy life net I am your
host Alicia Pierce and okay Emanuel I
want to dive into more information and
give us more information about the
services offered at Ecole mundo and your
role with the organization so eco mundo
is a regulatory compliance firm founded
initially in Paris France and we’ve had
a local presence in North America and
Canada since 2012 and I am the director
of North American operations for echo
mundo North America based in Montreal
Canada and basically in short at COO
mundo has I would say two plus one key
expertise
the first one is chemical compliance and
chemical risk management expertise that
specifically deals about the EU
regulation on chemicals which is you may
have heard it’s called reach
registration and authorization of
chemicals if you you are a company
foreign company and you want to sell
those products in into the European
economic space and then we have our
second core expertise which is the
cosmetic compliance expertise we cover
Europe compliance mostly 31 countries
that we also more and more cover the
Health Canada Canada and us compliance
for customers that come from Europe and
one more now from Asia including South
Korea
so those are really the two core
expertise and then we have a set plus 1
because we have another expertise also
in softwares so we are
you software editing company as well we
build those software solutions and now
and those software’s are meant to
facilitate the treatment of data and
information for companies in the field
of you know chemicals or cosmetics or in
the department’s of formulators
companies that need to ensure that they
can have a if you want to pre regulatory
check on the formula that they are
working on and in order to save time and
you gotta be sure that the formula they
are developing will be compliant for a
variety of places so I understand that
echo mundo has developed the first
web-based environmental data exchange
platform can you tell us a little more
about that
so environmental what is the clean
environment of that data exchange yes so
is that that’s the echo mundo as a whole
the ability to exchange platform and
exchange information online oh yes yes I
believe that yeah okay that is the data
sort of data repository platform that we
have developed to facilitate the
exchange of information between brands
but also their suppliers or contract
manufacturers so as to facilitate the
collection of data into a central
repository that will make more increase
the efficacy and the make more efficient
the treatment of the both data and
orders for us to build the you know
safety assessment and provide a timely
production of their product information
file so that is something that we we
spend a lot of energy time and money on
and helps
now that we work with multinational
companies that have international
perspectives and perfection and
opportunities so they need a place often
because they have remote locations and
offices so they need a place where
including in out more people from
different departments in different
countries can access and share
information between the sales department
the quality compliance department and
the RNG Department for example and echo
mundo at the very young I love it I
think it’s very progressive and such a
wonderful service with the idea of
preserving the environment at the core
so that that mission really resonates
with us that american-made beauty so
let’s see I want to thank you for taking
the time you Manuel I really appreciate
all of the wisdom you’ve shared with us
today and I look forward to of being
able to absorb the heat or your
information as again sometime soon well
thank you very much it’s a thank you for
the opportunity and and and thanks for
having me on the show
and it’s it’s a pleasure to everyday
work with our customers in the US and in
Canada and accompany them and help them
export it’s really the core of what we
do and what we like doing here and make
a complex regulation understandable for
them and making sure they will save the
trouble of having any issues on the long
term thank you so much I’ve been a fan
of echo mundos work for a long time so
it’s an honor to to sit down and speak
with you
our time has come to an end so I thank
you again the manual for sharing thank
you healthy life net for the support and
we are going to
come back next week with where Patty
will be interviewing Tish and Snooki the
founders of Manic Panic to all of our
viewers if you have any questions or
comments please send them to request at
american-made Beauty calm and as always
as patty says continue to maintain hope
for a brighter morning even in our
darkest times
I’m Alicia Pierce thanks for listening
to radio AM B where we think pretty is
pretty important for all things in
beauty
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[Music]