Section 27A of Drugs and Cosmetics Act 1940 - Penalty for Manufacture or Sale of Cosmetics in Contravention of Chapter IV

Section 27A prescribes criminal penalties where a person manufactures for sale or distribution, sells, stocks, exhibits or offers for sale cosmetics in contravention of Chapter IV of the Drugs and Cosmetics Act, 1940. It distinguishes spurious or adulterated cosmetics from other contraventions.

At a glance: Clause (i) applies to cosmetics deemed spurious under Section 17D or adulterated under Section 17E. Clause (ii) applies to other cosmetics dealt with in contravention of Chapter IV or rules made under it.

Text and effect of Section 27A

Section 27A - Penalty for manufacture, sale, etc., of cosmetics in contravention of this Chapter.

Whoever himself or by any other person on his behalf manufactures for sale or for distribution, or sells, or stocks or exhibits or offers for sale:

(i) any cosmetic deemed to be spurious under Section 17D or adulterated under Section 17E is punishable with imprisonment for a term which may extend to three years and with a fine of not less than Rs. 50,000 or three times the value of the cosmetics confiscated, whichever is more.

(ii) any other cosmetic, in contravention of any provision of Chapter IV or any rule made under it, is punishable with imprisonment for a term which may extend to one year, or with fine which may extend to Rs. 20,000, or with both.

Spurious or adulterated cosmeticsImprisonment may extend to 3 years, plus a fine of at least Rs. 50,000 or three times the value of confiscated cosmetics, whichever is higher.

Other Chapter IV or rule contraventionsImprisonment may extend to 1 year, or fine may extend to Rs. 20,000, or both.

What is a cosmetic?

Section 3(aaa) defines a cosmetic broadly as an article intended to be applied to the human body for cleansing, beautifying, promoting attractiveness or altering appearance, and includes an article intended for use as a component of a cosmetic. The statutory definition determines whether a product falls within the cosmetics framework.

Section 17D - Spurious cosmetics

A cosmetic is deemed spurious in circumstances specified by Section 17D, including where it is manufactured under the name of another cosmetic, imitates or substitutes another cosmetic in a manner likely to deceive, bears a fictitious manufacturer's identity, or falsely purports to be the product of a manufacturer. Read Section 17D.

Section 17E - Adulterated cosmetics

Section 17E treats a cosmetic as adulterated in specified circumstances, including contamination with filthy, putrid or decomposed matter, insanitary preparation or storage, a harmful container, impermissible colouring, harmful or toxic substances, or mixing that reduces quality or strength. Read Section 17E.

How Section 27A operates with the Cosmetics Rules 2020

The regulation of cosmetics is now supported by the Cosmetics Rules, 2020. Those Rules apply to cosmetics within Section 3(aaa) and contain requirements relating to import, manufacture, licensing, standards, labelling and related regulatory matters. A contravention should therefore be examined with the relevant provision of the Act and the applicable rule, licence condition, standard or notification.

Legislative history

Section 27A was substituted along with Section 27 by Act 68 of 1982 with effect from 1 February 1983. Clauses (i) and (ii) were later substituted by Act 26 of 2008 with effect from 10 August 2009, introducing the present penalty structure for spurious and adulterated cosmetics.

Legal note: This page is an explanatory guide. For a prosecution, compliance decision or legal proceeding, the current text of the Act, applicable Cosmetics Rules, amendments, notifications and the facts of the particular case should be checked.