Cosmetics competition reform will open market, lower prices - Health Ministry

The ministry said it is reducing the regulatory burden in the field while protecting public health from cosmetics that could be harmful to health.

 Illustrative image of makeup. (photo credit: FLICKR)
Illustrative image of makeup.
(photo credit: FLICKR)

The Health Ministry’s long-promised reform to open the market to competition in the cosmetic sector is projected to save time and increase the variety of cosmetics on the market while protecting public health has now been fully launched.

On Thursday, a meeting was held with manufacturers and importers of cosmetics to make the reform’s details accessible.

The ministry said it is reducing the regulatory burden in the field while protecting public health from cosmetics that could be harmful to health. It said the reform is a “significant and wide-ranging change” to which it has devoted much effort and resources. “We hope it will lead to a drop in prices that will make it easier for consumers.”

Will the cosmetics reform lead to prices dropping?

This depends on whether or not the pharmacies and other stores follow through and lower prices in accordance with the discount that will become available when products no longer belong to monopolies.

Two new paths were developed – switching to a method of importing based on a notification regarding marketing instead of licenses from the ministry using three new computer systems that allow easy and fast registration. Importers and manufacturers will no longer have to obtain a license for any cosmetic product they produce or import and will be able to market the products after submitting notification to the ministry – subject to the conditions set forth.

 Molton Brown at the Kempinski Hotel  (credit: Shai Cohen)
Molton Brown at the Kempinski Hotel (credit: Shai Cohen)

The authorities sent down a parallel import route of cosmetics based on confirmation of conformity to a cosmetic that already has a license from the ministry or for which a notification has been made, which already came into effect on January 1, making it possible to increase the number of cosmetic brands and open the market to competition while maintaining public health. The ministry said it will continue to monitor the situation and conduct controls and sample tests in the market.

Ministry Director-General Moshe Bar Siman Tov said the reform comes into effect “after years of hard work by all the relevant parties who worked on the move. This reform joins the food reform that came into effect a few months ago.”

Rinat Becher, director of the ministry’s cosmetics, added that “this creates a real revolution that aligns itself with European regulations and makes it significantly easier for those involved in the market. We hope that the great amount of work invested will indeed increase competition in the market and lead to lower prices while protecting the public.”