Safety & Traceability in Cosmetics

How do you know the products you are applying are safe for yourself and your children? The average consumer doesn't know. Which is why companies of value and integrity go to great lengths to abide by product safety regulations making sure the products they are manufacturing and distributing are safe.

There are many considerations for the manufacturer, distributor and consumer when cosmetics/personal care products are involved.

<u>Value Chain Considerations</u>

<u>For Companies</u>

Comply with regulatory requirements
Maintain brand integrity
Reduce costs/fines
Improve supply chain efficiency
Greater transparency in the manufacturing process
Enhance traceability
Better communication along the value chain
Sustainability

***Example of potential fines assessed for misidentified products.
Legislative Decree N° 204 of December 4, 2015 contains information about the rules on penalties for infringement of Regulation (EC) N ° 1223/2009 on cosmetic products.

Article 7: Identification within the supply chain

The identification requirements in the supply chain from the person responsible / supplier at the request of a competent authority.

If these obligations are not respected, you have to pay a fine of 10,000 to 25,000 EUR

<https://www.ceprasrl.it/EN/sectors/chemicals-compliance/cosmetics/consulting-cosmetics/main-penalties.xhtml>

For Distributors

Reduce cost (paperwork)
Improve efficiency
Better tracking
Better communication between manufacturers and retailers
Better transparency in the delivery process
Better understanding of hazardous materials contained in products being transported
More expedient deliveries

***Example of costs that are incurred if products are not classified properly

The classification of your goods may seem like a relatively insignificant part of the shipping process. After all, you're just labeling what you send. But doing so incorrectly can create multiple problems.

<https://www.jbstrans.com/3-problems-caused-by-misclassification-of-your-cargo>

For Consumers

Better understanding of the product's journey
Ability to make more informed choices before final purchase
Closer relationship with brands and products
Access to important information about the materials contained in products
More visibility into product claims

***Example dangers of manufacturers not protecting consumer wellbeing.

The "No Per- and polyfluoroalkyl substances (PFAS) in Cosmetics Act" was introduced in the US House and Senate.

There are adverse health effects associated with exposure to PFAS , including liver damage, thyroid disease, decreased fertility, high cholesterol, obesity, hormone suppression and cancer.

New studies found high levels of markers for toxic PFAS substances in 52% of 231 makeup products purchased in the United States and Canada.

****What we are Proposing:****A comprehensive cosmetic/personal care product value chain and traceability solution on the Cardano blockchain that realizes the above considerations for manufacturers, distributors and consumers. The cost to all three marketplace actors can be reduced significantly by bringing more efficiency, transparency and sustainability to the overall value chain.

Road Map

01/2022 - Analysis and Planning Manufacturer / Distributor Requirements Gathering

02/2022 - Refine and Model System Design / Risk mitigation

03/2022 - Audit System Design

05/2022 - UX UI / Design and Prototyping

06/2022 - Development

09/2022 - Testing

11/2022 - Deployment

12/2022… - Maintenance

Link to Full Proposal: https://docs.google.com/document/d/18egwhK3wWq9XnE44DHcfh5wqb5kRIhUdpfZKk1MZV04/edit?usp=sharing

Budget (Complete Solution):

Team Fees - $5366 (Fund 7) | $70000 (Full project)
Requirements Analyst: $9163 (Fund 7)
System architect: $13342(Fund 7)
Full stack developer: $0 (Fund 7) | $65000 (Full project)

Ask:

The ask for fund 7 is for first four months of project

Deliverables:

*****Architecture

** Definition document

** Vision

** Communications plan

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