So you’ve started making your own lip balms or lotions and people actually want to buy them. That’s amazing. But before you start listing them on Etsy or selling at a craft fair, there’s something you need to know: the federal government has rules about how your product has to be labeled — and they apply to small sellers too.
The FDA is the government agency that oversees cosmetics sold in the United States. According to their Small Businesses & Homemade Cosmetics Fact Sheet, any cosmetic sold in the US needs to be safe for consumers AND properly labeled. That “properly labeled” part is where a lot of small sellers get tripped up.
Here’s what “properly labeled” actually means. Your product’s label needs to include an ingredient list — and not just any format. There are specific legal requirements for how ingredients get listed. The rules come from two federal laws: the FD&C Act and the Fair Packaging and Labeling Act (FP&L Act). The ingredient list and the net quantity of contents (basically, how much product is in the package) have to appear on the outer container. Label statements required under the FD&C Act must appear on both the inside and outside packaging — while FP&L Act requirements like the ingredient list apply only to the outer container.
The FDA also spells out where things have to appear on the label. Some required statements have to show up on both the inside and outside packaging. Others only need to be on the outer container. It sounds like a small detail, but it matters legally.
Now here’s the part that might surprise you: the FDA doesn’t approve your label before you sell. There’s no application you submit. Instead, it’s entirely on you — the maker and seller — to make sure everything is correct before your product hits the market. If your labeling doesn’t comply with the rules, your product is considered “misbranded” under federal law. And a misbranded product can be seized or banned from sale.
One more thing worth knowing: federal cosmetics law has been updated in recent years. The Modernization of Cosmetics Regulation Act of 2022 (MoCRA) added new requirements beyond labeling — including facility registration and product listing with the FDA. These rules are being phased in, so if you’re serious about selling, check the FDA’s current guidance on MoCRA to make sure you’re fully up to date.
The good news is the FDA publishes a full Cosmetics Labeling Guide that walks through exactly what’s required. It’s a lot of detail, but it exists specifically so sellers know what to do. Read it before you put your first product up for sale — not after.