-
What is too much?
What is too much information to give customers as far as regulatory documentation? I understand paperwork and statements are apart of our worklife but there has to be a line/threshold. A coworker suggested for the IL to give trade names, vendor, COA, SDS, various statements, blends, inci, cas, % of each component, to show good faith and transparency. Is this too much?
Some how on there must be a line before divulging everything to where a customer may take the info and go else where…Do you ask the customer to sign an agreement of sorts? Ideas?
-
7 Replies
-
Are you selling raw materials?
If yes you can prepare COA and SDS or change the name of company that you have received it from and write your company name and give it to them.If you are selling finished product you don’t need to give any information other than the name of ingredients in your product.
-
Stanley said:Do you ask the customer to sign an agreement of sorts? Ideas?You should.
I assumed you’re USA based.
trade names, vendor, COA, SDS, various statements, blends, inci, cas, % of each component - normally not necessary, only inci for LOI, but if the trade name of certain ingredient can be use in marketing then it would be good for marketer.But if it’s a 30,000 USD or more per formula, I would expect every or most of detail bit.
-
My question is more formula based. If you make a formula for a customer should you give them trade names, inci, etc to the point where they can take the formula you created and go else where? How does R&D fees factor into your decision?
-
Ah, just to ensure I understand the question, the situation is this…
1. You are a formulator & manufacturer working with a customer.
2. They hire you to create a formula for them.
3. You do the work and create the requested formula.
4. You then manufacture the product for them.You want to know how much information about this formula you are supposed to give them?
I think that’s what you’re asking.It seems to me what you give them exactly should be spelled out in the contract up front. The more information they want, the more expensive it should be. So, like @Pattsi said, if they want all the information (trade name, suppliers, percents, etc) that should cost the most.
If they don’t want to spend a lot of money up front, giving them the INCI list (for labeling) while you manufacture the product, would probably be enough. Although, that also assumes that you put your company’s name down as the manufacturer and you take on the responsibility for any safety problems that might happen down the road.
And if they want to buy the formula from you, then you could give them all the details.
I don’t know really. It’s an interesting question. But that’s how I would handle it.
-
@ Perry
That is what my question is exactly.My problem is not with the customer but with my co worker that wants to be extremely “transparent” with the customer. I don’t think tradenames should be involved unless premiums are requested/contracted. My co worker believes sharing everything is being transparent with the customer regardless if they have paid a premium this will be the regulatory norm. My point is IF the customer was paying a premium for R&D fee ….sure …. give them everything.
Where does the question of what is regulatory responsible come into play on how transparent to be?
-
From a regulatory standpoint, I don’t think anything really applies, except it would likely be illegal to lie to your customer. You coming up with a formula for someone is more of a contractual thing and agreement between parties. The government isn’t really involved. Transparency has no legal meaning as it can mean whatever you (and your customer) believe it means. For some it would be the ingredients, exact percentages and manufacturing procedure. For others it might mean giving them everything including supplier names. It’s up to you to decide.
If you want to share everything you can. For some formulators that might be a selling point of differentiation. Most manufacturers/formulators would not give anything more than the List of Ingredients.
The downside of sharing everything is that the customer can easily drop you for someone who is cheaper. On the other hand, it would be a great business model if you could develop a relationship with the customer that is so strong that even knowing all the details of the formula, they wouldn’t want to leave you for a cheaper price. Ideally, that would be the best situation. When you withhold information from the customer that reduces trust between parties.
I was once quoted from a manufacturer that they would charge $500 for a formula, a fee which would be waived if we did the first production run with them. But in either case they weren’t going to give the exact formula with all suppliers identified. It cost more like $4000 to get the formula and everything else.
I’m sure @chemicalmatt could weigh in on this.
-
Your regulatory responsibility to to create an accurate LOI which is a INCI listing of the ingredients in the formula ordered in accordance with the labelling requirements and ensure that the product is safe for consumer use. That does not include the Tradename or manufactuer of the ingredient.
What you divulge beyond that is a function of your contractual relationship with the client. If the client owns the intellectual property (ie: the formula) and has paid you for it, then your obligation would be the INCI, Tradename, Suppliers and Percentages. If you want to throw in SDS for each ingredient for good measure, then fine.
If your client has not negotiated with you the ownership of the IP to the formula (for which they should pay a premium), then you have no obligation to reveal the Tradeaname, Supplier & Percentages. You just develop the formula for them, test it, manufacture & fill and provide them with an LOI.
It sounds as though your work mate has yet to be burnt by full transparency with a client who has not paid full price for that level of detailed information. If your client has paid for full transparency, then you owe it to them, obviously.
Log in to reply.