This article takes inspiration from a common question among solopreneurs who venture into selling homemade products like sugar scrubs and more. It’s crucial to acknowledge that there are serious risks involved in selling such items, and many therapists may not be fully aware of these risks.
That’s why we’re here to shed light on the three essential legal protections you MUST have in place when selling homemade products in your massage practice.
Whether you’re selling your own creations or someone else’s, these three major considerations apply to anything like sugar scrubs, lotions, lip balms, and all similar products.
#1: Use The Power of Preservatives!
Let’s talk about preservatives, folks – they’re an absolute must for the vast majority of these products. Even if there’s a teeny speck of water or a water-based ingredient, or if the product might come into contact with moisture or eager fingers, you need a freaking preservative!
Not only is it the responsible thing to do, but it also shields you from potential lawsuits if you neglect this crucial step.
Now, I know what you might be thinking – “Hey, it’s just little ol’ me and my fantastic, all-natural, organic ingredients, blah blah blah.” And hey, I’m all for the goodness of natural stuff, but here’s the cold truth…
Mold and bacteria are freaking organic and all-natural, too! Picture your client applying that infested scrub or lotion over a tiny cut or nick from shaving – it’s a gateway for nastiness to breach the barrier and possibly invade their bloodstream. Heaven forbid if that person is immunocompromised due to an illness or medication.
Now, I don’t mean to scare the bejeezus out of you, but well, I kinda am. This is no joke; it’s a serious matter that demands attention. I’ve seen therapists use these great ingredient-packed products without preservatives, or they buy from local makers who skip this step, and guess what?
Those products sit on a shelf for six months or a year. But here’s the kicker – just because something looks or smells fine doesn’t guarantee it is safe.
For the love of all that is holy, please put a freaking preservative in your products!
And let’s clear up a common misconception – while essential oils might have some antibacterial or antifungal properties, they simply aren’t full-spectrum, safe, or reliable preservatives.
Adding the sheer amount needed to potentially act as a preservative would usually render the product unsuitable or even hazardous. But fear not, my friends, there are fantastic all-natural options out there.
I get it, parabens, phenoxyethanol, and the like are not the kind of stuff we want in our products or on our skin. But here’s the good news – there are all-natural, broad-spectrum preservatives that work wonders against bacteria and fungi, so no need to use the harsh stuff.
Let me introduce you to a couple of options: Willow Bark extract, which is all natural, or Preservative Eco, a special formulation derived from benzyl alcohol, salicylic acid, glycerin, and sorbic acid. Both work like a charm!
Just remember, when using all-natural preservatives, you’ll often need a higher concentration, so the preservative will make up a larger percentage of your product compared to some other options.
Let’s get serious here – this is not something to guess at or take lightly. Do your homework, research this stuff thoroughly, and run tests to ensure you’ve got the right preservative for your products.
Now, an important distinction to make is between rancidity and the growth of mold or bacteria. Don’t be fooled – just because something looks or smells fine doesn’t mean it is! Mold and bacteria can silently multiply at a microscopic level long before you notice the first little tinge of something funky. Their growth is fueled by moisture and the yummy ingredients we put in these products, like sugars and whatnot.
So, stay vigilant and use a preservative to keep your creations fresh and safe!
Ah, rancidity – the nemesis of oil, butter, and other fat-based ingredients within your product.
Take almond oil, for example; it’s got a shelf life of one year. During that time, it’ll smell just fine, and the oil will be in excellent condition. But as you approach that year mark, the smell will start to turn – indicating the oil has gone rancid.
Now, if you’ve used preservatives, the product may still be “safe,” but the oil itself is just past its prime.
But here’s the kicker – if that same product is exposed to any moisture or if you include ingredients containing water, like hydrosols, floral water, or aloe vera juice, the perfect breeding ground for bacteria and mold is created.
And here’s the sneaky part – those little nasties can grow long before you even see or smell any signs of trouble. That’s why I can’t stress it enough – use a preservative in your products.
We’re living in an age where you can order anything online, so there’s no excuse not to do your research and find a preservative that suits your creations. And hey, if you’re using or selling someone else’s homemade products, make sure they’ve used a preservative, and it’s at the right concentration to be effective. It’s all about keeping things safe and fresh!
Okay, let’s move on to the next important point…
#2: Clear Labeling Is A Must!
Labeling your products is not just a preference; it’s a strict rule laid down by the FDA here in the United States. If you’re outside the US, be sure to check your local and national laws and regulations. Now, I won’t bore you with all the nitty-gritty details of the complex laws – I’ll keep it simple for you.
The FDA does regulate cosmetics to some extent, and many spa products fall under this category. However, you need to be cautious about the claims you make about your products to avoid being classified as a “drug.”
According to the FDA, a product is considered a cosmetic if it’s intended for uses like cleansing the body, enhancing attractiveness, or altering appearance.
But here’s where it gets tricky – some products can meet the definitions of both cosmetics and drugs if they have dual intended uses.
For instance, a shampoo is a cosmetic because its intended use is to cleanse hair, while an antidandruff treatment is a drug because it’s intended to treat dandruff. So, an antidandruff shampoo is both a cosmetic and a drug.
Other examples include toothpaste with fluoride, deodorants with antiperspirants, and sun-protection moisturizers and makeup.
These products must comply with both cosmetic and drug requirements.
To avoid diving deep into legal requirements and extensive lab testing for your products, steer clear of making claims about treating medical conditions, even seemingly minor ones like minor skin issues. Doing so could still classify your product as a “drug.”
If you claim to alter the body’s structure or function, including the skin, guess what – it’s a “drug.”
Now, let’s talk about labeling your products. Good news – you don’t have to get your label approved by the FDA beforehand. Bad news – you’re solely responsible for how you label your product. Anything goes wrong, they’re all coming for you!
Since, it’s your legal responsibility to ensure your label is accurate and complies with all the guidelines, you’re going to want to get it right!
Let’s break down the essential elements that must be included (use this as a handy checklist):
The product name must be clearly displayed on the label.
List all ingredients using their common name and/or scientific name without any additional descriptions. If an ingredient is “certified organic,” you can use that as part of the name in the list. However, you might notice a little star next to some ingredients on a label. The star is explained below the ingredient list and indicates that those ingredients are “all natural,” “naturally derived,” “organic,” or any other description the maker wants to convey. Just remember not to include such descriptive terms alongside the ingredients in the ingredient list.
Your label must include a “directions for safe use” section.
It’s crucial to list out any warnings, such as “do not use on open wounds” and “not meant to treat, cure, or prevent any medical conditions.” Let’s face reality – just because something is labeled as “natural” doesn’t automatically mean it’s safe for everyone. After all, arsenic and botulism are natural too! Let’s be responsible adults here and consider the potential hazards of essential oils and other ingredients, especially for people with certain conditions or when not used properly. Safety first!
When it comes to cosmetics, color additives are the only ingredients that require approval by the FDA. So, it’s best to avoid using color additives altogether.
The term “natural” is not a regulatory term, and you can use it however you want. However, it doesn’t hold much weight with the FDA or serve as a safety term. It’s often used as a marketing ploy.
Here’s an interesting tidbit – the FDA doesn’t regulate the use of the term “organic,” but the USDA does. So, unless you’ve had your product independently tested and approved by the USDA, you cannot claim that your product is organic. Instead, you can list all the individual ingredients officially classified as organic by the USDA, and if they come with that little seal of approval, you can proudly state that your product is made with USDA organic ingredients. But hey, here’s the catch – your product cannot be labeled as USDA organic unless you’re willing to shell out some big bucks to get it officially approved by the USDA, even if every ingredient you use is organic. Make sense?
The FDA requires cosmetic labels to clearly identify the name and place of business of the manufacturer, packer, or distributor. You’ve got to include the physical address of your business or the business that produces your products on the label – no PO Box or website address alone. While those things can be included if you wish, you must have the physical address on there too.
Don’t forget to list the quantity of the product – whether it’s in ounces, grams, or any other unit of measurement, measure it accurately and put it on the label.
When it comes to the typeface on the label, it must be large enough to be easily read and understood.
Oh, there’s more – even the size of the Primary Display Label, or the main label on the packaging, is regulated. For a rectangular package, the label has to occupy one entire side.
For cylindrical packages, the label must cover 40% of the height multiplied by the circumference. As for other uniquely shaped containers, the label should take up 40% of the total container surface, excluding the top, bottom, neck, and other decorative protrusions. Yep, seriously – this is the law!
If you have an outer container that holds the primary container with the product inside, both containers need to have a similar label with all the necessary information. Consistency is key!
And don’t forget about the expiration date. It’s essential to include an “expiration from open” date on your labels. You can choose to state something like “use within 6 months from the date opened,” or even add a little symbol of a jar with “6 months” written on it. Alternatively, you could leave a blank space on your labels where you can manually write in the date it was made and the “use by” date (doesn’t that just make your products standout and look super handmade!?).
Below is an 18-minute video where a fellow solopreneur (owner of Bubble Babez Bath Co) demonstrates, step-by-step, how she makes her product labels. The video focuses on the technical side (what software to use, how to size your labels, fonts, etc.) so take what you learned from the list above and keep it in mind as you create your next label.
#3: You MUST collect sales tax!
Now, I know this depends on your area, but in most places, even if you’re only selling a few items here and there, sales tax is still required to be collected.
So, you’ll need to apply for a sales tax permit or ID with your state, collect that tax from your customers, and then dutifully pay it to your state. The frequency of payment will depend on their requirements and your preferences – it could be every month, every quarter, or every year.
Now, some of you might think this is obvious, but I’ve seen many therapists who overlook this step. They believe that since they’re only selling a few things, it’s not a big deal.
Well, let me tell you what is a big deal – tax fraud and tax evasion. Even if you’re selling crafts occasionally, certain areas may not have strict regulations on that, but here’s the deal: you’re running a business, and that business is selling a product. Therefore, you need to collect sales tax.
Now, whether you add the sales tax on top of your product price or include it in the price is entirely up to you. But either way, the state expects to get its piece, and you better make sure they get it. Plain and simple – collect and pay the tax.
I know this may sound like a lot of information, but these are crucial aspects you have to consider.
Remember, you’re a business, so act like one.
Yes, it might take a little time to put everything together initially and ensure you’re complying with all the rules, but once you do, it’ll be smooth sailing from there.
No worries about someone getting hurt or getting into legal trouble for improper labeling or tax matters.
So, get your business on the right track and sail into success with confidence (while keeping your solopreneur ass nicely covered)!
