What is the concern with cosmetics?
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Cosmetic manufacturers and their insurers should be on the alert for potential regulatory developments and increasing litigation as consumers elevate their scrutiny of product ingredients. A 2016 class action settlement of USD 26m involving WEN hair-care products illustrates multi-million dollar exposures that can be associated with product claims. Our P&C Trend Spotlight explores emerging cosmetics exposures and whether growing scrutiny could trigger a wave of claims.
Among the issues, trends and potential impact, is the possibility of new litigation arising from mislabeling and falsely advertising cosmetics. Additionally, the impact of long-term exposure to cosmetics may represent unknown risks, including concerns related to the effects of nanoparticles. Currently in the United States, there are no regulatory proposals requiring manufacturers or others to report safety complaints, and there is no federal oversight, but that could change. Find out more in "What's the concern with cosmetics".