Cosmetics network sales, that is, cosmetics operators through the Internet and other information network to sell cosmetics business activities. According to different standards, cosmetics online sales can be divided into different categories: according to different sales entities can be divided into B2C model and C2C model; According to different trade forms, it can be divided into general trade forms and cross-border e-commerce retail forms. According to different release carriers, it can be divided into traditional e-commerce and new e-commerce forms, of which new e-commerce includes social e-commerce (through social media to release the form of transaction, such as wechat mini program), content e-commerce (such as small red book, through sending product experience, content introduction, consumers buy products through introduction) and live streaming e-commerce. Affected by the epidemic this year, the sales of the cosmetics industry have been generally affected. According to the statistics of the National Bureau of Statistics in the first quarter of 2020, the national retail sales of cosmetics fell by 13.2% compared with the same period last year. Although the overall retail sales of the industry have declined, many cosmetics companies have shifted their focus to online, in addition to stimulating traditional e-commerce channels, but also through live broadcasting, social promotion and other marketing means to achieve a significant increase in online sales. According to the "Full perspective on the performance of Domestic listed beauty companies in Q1 2020" released by Jumei wechat public account, the overall growth rate of Pillmei shares' online sales revenue in the first quarter exceeded 20%, and Pelaiya's online channels increased by 30%+ year-on-year, accounting for 56% of revenue. While online sales of cosmetics are booming, we also see that online sales of cosmetics are mixed, and illegal behaviors abound. In May 2019, the State Food and Drug Administration carried out supervision measures of "online net and offline clean source" for cosmetics in view of the four main problems in the current online sales of cosmetics (sales of counterfeit cosmetics, sales of cosmetics that have not been registered and filed, illegal advertising, and sales of cosmetics with quality and safety risks). We will severely crack down on the use of the Internet to produce and sell illegal cosmetics and illegal claims, rectify and standardize the order of the cosmetics market, and gradually establish a supervision system for online sales of cosmetics. In the face of promising online sales channels, what compliance requirements should cosmetics operators pay attention to when engaging in online sales?

     Red Line 1: Non-cosmetics may not be sold as cosmetics. In the Regulations on the Supervision and Administration of Cosmetics issued on June 29 this year, cosmetics are defined as "daily chemical industrial products applied to the skin, hair, nails, lips and other human surfaces by rubbing, spraying or other similar methods for the purpose of cleaning, protecting, beautifying and modifying." Through the analysis of the above definition of cosmetics, it can be concluded that China's cosmetics have the following four characteristics: (1) from the point of use, cosmetics directly contact the surface of the human skin. Industrial products that do not directly remove human skin, such as aromatherapy products, air fresheners, dishwashing liquid, laundry detergent, laundry detergent, clothing softener, glass cleaning machine, etc., although the name is similar to cosmetic products, it does not belong to the category of cosmetics. (2) From the perspective of use, cosmetics are applied to the surface of the human body by rubbing, spraying or other similar methods. Products that enter the human skin by oral, injection and other means, such as tablets, Botox, filled milk hydrogels and other products, do not belong to the category of cosmetics because of different methods of use. (3) From the perspective of function, cosmetics have cleaning, protection, beautification and modification effects. Cosmetics do not have medical benefits, which is one of the important differences between cosmetics and drugs. According to the relevant provisions of China's Drug Administration Law, drugs refer to substances used for the prevention, treatment and diagnosis of human diseases, purposefully regulating human physiological functions, and providing indications or functional indications, usage and dosage, including Chinese herbal medicines, Chinese herbal medicines, chemical raw materials and their preparations. Drugs are products that have the function of preventing, treating and diagnosing human diseases, while cosmetics do not have the above-mentioned medical effects. (4) Cosmetics are products of daily chemical industry. Although the beauty instrument has a beauty effect, it is not a chemical industry product, which belongs to the category of small household appliances, it does not belong to cosmetics. Therefore, products with the above four characteristics are cosmetics; Otherwise, it does not belong to cosmetics and cannot be sold as cosmetics. For example, medical cold packs, injections, aromatherapy and other products shall not be sold as cosmetics in online channels.

Red line 2: Products must not advertise medical benefits. Cosmetics and pharmaceuticals are two different things. To avoid the confusion of the concept of cosmetics and drugs is the general consensus of the cosmetic regulatory authorities in the world. Most countries in the world do not have the concept of "cosmeceuticals" at the regulatory level. In the category of drugs or pharmaceutical accessories in some countries, some products also have the purpose of cosmetic use, but such products must first meet the regulatory requirements of drugs or pharmaceutical accessories, and there is no "cosmeceuticals" that are managed solely in accordance with cosmetics, such as Japan. In China's cosmetics market, there is no concept of "cosmeceuticals". According to the Regulations on the Supervision and Administration of Cosmetics, the labels of cosmetics are forbidden to indicate the contents of express or implied medical effects; False or misleading content; Content that violates social public order and good customs and other content prohibited by laws and administrative regulations. The Advertising Law also stipulates that, except for advertisements for medical treatment, drugs and medical devices, any other advertisements are prohibited from involving the function of disease treatment, and shall not use medical terms or terms that are easy to confuse the marketed goods with drugs and medical devices. Therefore, the promotion of cosmetics shall not involve the treatment of diseases, and shall not use medical terms or terms that are easy to be confused with drugs and medical devices. The above value orientation is in line with the definition of cosmetics in China. In the Regulations on the Supervision and Administration of Cosmetics, cosmetics are defined as "daily chemical industrial products that are applied to the skin, hair, nails, lips and other human surfaces by rubbing, spraying or other similar methods for the purpose of cleaning, protecting, beautifying and modifying". The analysis of the above concept of cosmetics shows that cosmetics in our country are not aimed at medical efficacy, nor can they be advertised as having medical efficacy. In response to the recent status quo of cosmeceuticals, the State Food and Drug Administration further clarified the problem in the form of the "Cosmetics Supervision FAQ (1)" on January 1, 2019: For products registered or filed in the name of cosmetics, declaring the concept of "cosmeceuticals" such as "cosmeceuticals" and "medical skin care products" is illegal. Therefore, cosmetic operators in the product promotion, shall not use antiviral, anti-inflammatory, antibacterial, hemostatic, anti-sensitivity and other terms to promote medical efficacy.

Red line 3: Store promotional content should be legal. Shop or product page advertising is dancing in chains. In order to highlight the publicity effect, the operator can carry out unique advertising creativity, but the publicity content should be legal and must not violate the prohibitions of the advertising law. China's Advertising Law stipulates that an advertisement may not be in the following circumstances: (1) the use or disguised use of the national flag, national anthem, national emblem, military flag, military song or military emblem of the People's Republic of China; (2) The use or disguised use of the name or image of a state organ or its staff; (3) Use terms such as "national level", "highest level" and "best"; (4) harm the dignity or interests of the state, divulge state secrets; (5) impeding social stability and harming social public interests; (6) endangering personal and property safety, revealing personal privacy; (7) impeding social public order or violating social good manners; (8) Content containing obscenity, pornography, gambling, superstition, terror, violence; (9) Content that contains ethnic, racial, religious, and gender discrimination; (10) impeding the protection of the environment, natural resources or cultural heritage; (11) Other circumstances prohibited by laws and administrative regulations. As far as the cosmetics industry is concerned, the use of absolute terms such as "national", "highest" and "best" in cosmetics publicity is a more prominent problem. Cosmetics network sales channels, some cosmetic operators in the product promotion will use the expression of the highest, unique, comprehensive and other extreme meaning of the claim content, such as the national only, no addition, absolutely safe, 100% effective, 100% natural, thoroughly solve the skin dark yellow words, the above product promotion are non-compliant behavior. It should be pointed out that in addition to meeting the requirements of the above-mentioned prohibitive circumstances, the legality of product publicity also includes non-infringement of trademark rights of others, non-damage to the physical and mental health of minors and disabled persons, non-derogation of goods or services of other producers and operators, and non-infringement of copyright of others, which is a broad concept.

Red Line 4: Store promotional content should be true. Cosmetics network sales channels, shop page propaganda content in addition to legal, but also real. China's advertising law stipulates that advertisements shall not contain false or misleading content, and shall not deceive or mislead consumers. The advertiser shall be responsible for the truth of the content of the advertisement. Truth is the life of advertising. Cosmetics operators should pay attention to the authenticity of the publicity content in the product publicity. As far as the publicity of cosmetic products is concerned, the performance, function, origin, use, quality, ingredients, price, producer, expiration date, promise, etc. of the commodity or the content, provider, form, quality, price, promise, etc. of the service should be accurate, clear and clear; Where it is indicated that the goods or services to be marketed are accompanied by a gift, the type, specification, quantity, term and method of the goods or services to be accompanied by a gift shall be clearly stated. The contents of false advertisements are often exaggerated and inaccurate, and the meaning is vague and misleading. The act of false advertisement is also manifested in two forms in law: act and omission. Act refers to the deliberate publication of false advertisement. Inaction is the obligation of the advertiser to explain or warn, but not to act. In particular, it should be pointed out that the content of product promotion and use of data, statistics, survey results, abstracts, quotations, etc., should not only be true and accurate, but also indicate the source; Where the content of the citation has scope of application and validity period, it shall be clearly stated. For example, after the end of the promotion activities of a cosmetics company in 2018, its brand hit the promotional page of "the first sales of men's facial cleansing products in the whole network", "the first sales of men's whole network", and "the first sales of men's skin care in the whole network in 2018" in the official flagship store of Tmall. After an investigation by the local industry and Commerce Department, it was found that the data of the above advertisement actually came from a software service purchased online by the party for statistical product online sales, but the party did not indicate the source when using it. Later, he was ordered to stop publishing the advertisement and was fined 80,000 yuan. In addition to bearing administrative responsibilities such as fines, false product advertising will also involve civil liabilities such as double compensation.

Red Line five: No single letter speculation. With the rise of e-commerce, the illegal industry chain of "brush single speculation" is also growing. In order to gain a place in the cruel e-commerce competition, it is becoming more and more common for businesses to abuse the evaluation mechanism of the platform, hire water soldiers to enhance their credibility and market competitiveness, or hire water soldiers to attack competitors. At present, the state explicitly prohibits the behavior of "brushing single speculation", and the e-commerce Law clearly stipulates that e-commerce operators shall not carry out false or misleading commercial publicity by fictitious transactions, fabricating user evaluations, etc., to deceive and mislead consumers. The Code of Conduct for Network Broadcast Marketing also clearly stipulates that network broadcast marketing entities shall not fabricate or tamper with transaction data and user evaluations by means of traffic counterfeiting such as brushing orders and speculation. If the operator brushes a single letter, it will face a fine of more than 200,000 yuan and less than one million yuan; If the circumstances are serious, a fine of not less than one million yuan but not more than two million yuan shall be imposed, and the business license may be revoked. If the amount of illegal business operations reaches the corresponding standard amount, it shall also constitute the crime of illegal business operations and be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also, or shall only, be fined not less than one time but not more than five times the illegal earnings; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years and shall also be fined not less than one time but not more than five times the illegal gains or confiscation of property.

Article 13 of the E-commerce Law of the People's Republic of China stipulates that "the commodities sold by e-commerce operators or the services provided shall meet the requirements of protecting personal and property safety and environmental protection, and shall not sell or provide commodities or services prohibited by laws and administrative regulations." With the improvement of consumption level, people pay more and more attention to the pursuit of beauty, the cosmetics industry will continue to play the charm of the sunrise industry. At the same time, the "Regulations on the Supervision and Administration of Cosmetics" will be implemented from January 1, 2021, and market supervision will be increasingly strengthened. Cosmetics network sales channels are not only outside the law, but also will expose the problem in the spotlight, operators must comply with the law, compliance management.