The Modernization of Cosmetics Regulation Act of 2022 (MoCRA) enhances FDA's authority over cosmetic product safety, requiring manufacturers to register their facilities, list their products with the FDA, and adhere to new safety standards and adverse event reporting requirements.

California Proposition 65, officially the Safe Drinking Water and Toxic Enforcement Act of 1986, requires businesses to provide warnings about significant exposures to chemicals that cause cancer, birth defects, or other reproductive harm. These chemicals are listed and updated yearly by California’s Office of Environmental Health Hazard Assessment (OEHHA). These can include certain preservatives or ingredients commonly found in cosmetics and hair products. The regulations are actively enforced, and penalties for non-compliance can be significant, including fines and legal action. This law impacts all businesses that operate in California or sell products to consumers in California, including online retailers and manufacturers based outside of the state. This also creates potential market implications as consumers may avoid products carrying Prop 65 warnings which may lead to a change in formulations and business practices within the user's industry to maintain consumer confidence and compliance with the law. In many cases, businesses are required to prove that the levels of listed chemicals in their products are below the 'no significant risk level' through rigorous testing and documentation. They also require businesses to provide clear and reasonable warnings on products or at points of sale. Failure to comply can result in significant penalties, including fines and legal actions, as well as reputational damage if consumers perceive the business as not prioritizing their health and safety. This impacts the industry by encouraging manufacturers to reformulate products to reduce or eliminate the presence of listed chemicals and implement comprehensive testing and labeling programs. Smaller businesses, in particular, may face challenges in affording the necessary testing and legal expertise to ensure compliance, creating a competitive disadvantage compared to larger corporations with dedicated regulatory affairs departments. Industry associations play a crucial role in providing guidance and resources to help businesses navigate the complexities of Proposition 65. Staying informed on updates to the list of chemicals and best practices for compliance is essential for businesses selling into the California market. There are potential changes to product formulations due to consumer avoidance of products with warnings, impacts on marketing and consumer communication, increased compliance costs for manufacturers, especially smaller businesses, and heightened scrutiny from regulatory agencies and consumer advocacy groups, the law significantly influences how businesses operate and communicate about product safety in California's consumer market, with ongoing monitoring and adaptation needed to stay compliant and competitive within this context. The impact is particularly felt in the Hair Care Industry due to the use of a wide range of chemicals in hair dyes, styling products, and treatments. The law can significantly affect AFAM Concept's business operations and market perception if products do not meet requirements. Compliance may necessitate costly testing and reformulation of products, especially those targeting multicultural hair, which often requires specific ingredients.

Several states, including California and New York, have implemented stricter regulations on chemicals in cosmetics and personal care products, including bans on certain ingredients and requirements for ingredient disclosure. For example, California's Safe Cosmetics Act and New York's Household Cleansing Product Information Disclosure Program mandate transparency and restrict the use of harmful chemicals.