Key Takeaways:
The beauty industry is currently facing the most unsettled and complex regulatory environment it has encountered in decades, with changes coming faster than many can manage and showing no signs of slowing down. From state-by-state activity in the US to EU regulations driving changes on an international level, beauty brands of all sizes need to be aware of what’s happening on the regulatory front or face serious consequences, including costly fines.
Regulatory updates from the Independent Beauty Association (IBA) have become a standing feature of BeautyMatter summits. Moderator Kelly Kovack, founder and CEO of BeautyMatter, recently sat down with Dr. Akemi Ooka, Interim CEO of the IBA, at BeautyMatter’s NEXT50 Summit in Los Angeles to discuss what’s in the pipeline and what brands should keep top of mind as they look ahead to 2026.
Kovack started the conversation candidly by noting that she and Ooka have become accustomed to everyone in the audience getting up and leaving during their discussion, yet they continue to have it year after year because the topic is that important.
“Everyone who stayed, you're the smart ones in this room,” she quipped. “It’s not the sexiest subject, but as Ooka says, she’ll keep you out of jail and help you avoid fines.”
Compliance is no longer just an issue for a brand’s regulatory department. Marketing, packaging, and product development teams must now work in sync to navigate shifting laws, new reporting requirements, and the patchwork of state-by-state rules filling gaps left by federal agencies.
Ooka began by addressing the elephant in the room: the changing political environment and its impact on federal oversight.
“We all know that this administration has really shaken up the regulatory agency oversight at the federal level,” she said. “We’ve seen not only a much less rigorous approach around regulatory oversight—they really want to pull back a lot of the regulations—but we’ve also seen a lot of turnover in the agencies.”
According to Ooka, the U.S. Food and Drug Administration’s (FDA) focus has shifted heavily toward food and drug safety under the administration’s “MAHA” agenda, leaving cosmetics somewhat under the radar. This is good news for beauty brands that are still adapting to the Modernization of Cosmetics Regulation Act (MoCRA), which was passed in 2022.
While the rollout of MoCRA continues, several core requirements are already enforceable.
“Product registration, facility registration, adverse-event reporting—those things need to absolutely be in place,” Ooka said. But other proposed rules, such as fragrance-allergen disclosure and GMP (good manufacturing practices) guidance, have been delayed, likely until 2026 or later.
One significant update for brands to note: the FDA recently unveiled a new real-time dashboard for reporting cosmetic adverse events, called the FDA Adverse Event Reporting System (FAERS). The dashboard enables the public to view and submit real-time adverse event data on a wide range of products, including moisturizers, shampoos, hair dyes, and tattoos. Ooka said it’s something to be aware of and track if your brand has any reported adverse events.
As the federal government pulls back, states have stepped up to fill the void. “We’ve talked with [state] regulators who told us directly, ‘We see the feds aren’t doing it, so we’re going to do it,’” Ooka said.
The result? An increasingly fragmented landscape that can leave brands scrambling to comply with dozens of differing standards.
To help the audience prioritize, Ooka shared the top five regulatory updates that beauty brands should be aware of for 2025 and beyond.
1. MoCRA Basics
While the law is still being phased in, MoCRA’s core pillars—facility registration, product listing, and adverse-event reporting—are non-negotiable. (Ooka didn’t spend too much time on MoCRA, but BeautyMatter has covered this topic extensively.)
2. Washington State’s Toxic-Free Cosmetics Act
Washington has taken an especially aggressive stance on chemical safety. The Department of Ecology’s Toxic-Free Cosmetics Act introduced a lead limit far below federal standards. Working with IBA and other associations, regulators created an interim policy offering companies two compliance options, but brands must notify the state if they can’t meet the new threshold.
Washington is also phasing in a ban on intentionally added formaldehyde-releasing ingredients, effective January 2027. “That’s one to take a look at,” Ooka noted. “They are actively looking for data and information from companies that cannot meet this limit.”
3. Musks and Microplastics
Fragrance ingredients remain in lawmakers’ crosshairs. California’s AB 60, known informally as the “Musk Reduction Act,” restricts several popular synthetic fragrance musks. “If you have fragrance ingredients, make sure you’re checking with your fragrance supplier,” Ooka cautioned.
Meanwhile, legislation targeting microplastics is evolving. Governor Gavin Newsom vetoed a recent California bill banning microbeads and glitter, citing concerns that it might also ban biodegradable or natural alternatives. “There’s some more work being done there,” Ooka said, signaling that the proposal is likely to be revised before being brought before state legislation again.
4. PFAS
No topic draws more scrutiny than PFAS, also known as “forever chemicals.” Multiple states, including California, Colorado, Maryland, and Washington, have already enacted bans on cosmetics containing intentionally added PFAS, effective January 2025, with many more following in 2026.
“This is a very big challenge for this industry,” Ooka warned. “It requires you to go back through your supply chain for every single ingredient to understand whether or not PFAS are included.”
Testing also remains problematic. “Often [labs] are testing for the presence of total fluorine, and there’s fluorine in a lot of things,” she said. “And once you create data, you can’t take it back.” Her advice: Consult with regulatory professionals and testing labs before beginning testing to understand what results you’re seeking and how you’ll act on them.
5. Extended Producer Responsibility (EPR) and Packaging Laws
Topping Ooka’s list is EPR, or Extended Producer Responsibility, which shifts the cost of packaging-waste management from municipalities to manufacturers. “This industry has been so focused on ingredients that packaging laws have taken everybody by surprise,” she said.
Six states—California, Colorado, Minnesota, Oregon, Washington, and Maine—already have EPR laws on the books, with more expected in 2026. Brands must register as “obligated producers,” report the volume and materials of their packaging, and pay fees based on what they distribute in each state.
These laws dovetail with other packaging rules, such as PCR (post-consumer recycled) content mandates in Washington requiring 15% PCR plastic for all products between eight fluid ounces and five gallons. “If you’re not registered, you’re in violation,” Ooka said. “Last year, they started issuing fines—around $400,000 from various groups.”
Ooka shared that Vermont recently passed an EPR law focused on household hazardous waste. Companies producing certain toxic products must register with the Vermont Agency of Natural Resources by November 1, 2025.
“This is a trend we’re starting to see,” Ooka said. “Extended producer responsibility is not new—mattresses, tires, paint follow similar regulations—but now we’re seeing it seep into cosmetics, and that’s really challenging for small businesses.”
Kovack closed the session by reminding attendees of IBA’s vital role in representing independent beauty businesses during regulatory negotiations. “When MoCRA was going through Congress, the IBA was at the table with the FDA telling them how these regulations impact our businesses,” she said. “If you’re not a member, you should be a member.”
IBA memberships cover entire teams, with early-stage rates for companies with revenue under $500,000 at approximately $500 per year. Beyond advocacy, members gain access to regulatory guidance, networking opportunities, and educational events, such as Cosmetics Convergence, the association’s twice-yearly conference. The next session, Ooka announced, will take place virtually on November 12-13, with IBA offering a 25% discount to BeautyMatter NEXT50 Summit attendees.
Beauty brands of all sizes can no longer afford to treat compliance as an afterthought. From PFAS testing to packaging transparency, regulation now directly shapes brand positioning, product development, and consumer trust.
If you want to learn more about the regulatory updates affecting beauty businesses, fill out this form to receive a copy of IBA’s Regulatory Radar Highlights Session Document.
