She might not be wrong. The glycerin base might not contain soap. It might be glycerin and industrial degreasers and detergents. Propylene Glycol and Sodium Laureth Sulfate and all that. No soap involved. No lye needed.
I would think, though, that for the FDA protections as SOAP it has to contain primarily alkaline salts of fat and lye as the primary detergent.
http://www.fda.gov/Cosmetics/GuidanceCo ... 074201.htm
I think that what they are selling, might very well constitute a DRUG or COSMETIC. Someone might want to check their labeling and even get the FDA involved. I am not suggesting you rat them out by calling in the FDA to remove competition, but examine your own ethics, and if you feel the public is being harmed it might be a moral imperative that you do so.
Here is an excerpt:
How FDA defines "soap"
Not every product marketed as soap meets FDA's definition of the term. FDA interprets the term "soap" to apply only when --
* The bulk of the nonvolatile matter in the product consists of an alkali salt of fatty acids and the product's detergent properties are due to the alkali-fatty acid compounds, and
* The product is labeled, sold, and represented solely as soap [21 CFR 701.20].
If a cleanser does not meet all of these criteria...
If a product intended to cleanse the human body does not meet all the criteria for soap, as listed above, it is either a cosmetic or a drug. For example:
If a product --
* consists of detergents or
* primarily of alkali salts of fatty acids and
* is intended not only for cleansing but also for other cosmetic uses, such as beautifying or moisturizing,
it is regulated as a cosmetic.
If a product --
* consists of detergents or
* primarily of alkali salts of fatty acids and
* is intended not only for cleansing but also to cure, treat, or prevent disease or to affect the structure or any function of the human body,
it is regulated as a drug.
If a product --
* is intended solely for cleansing the human body and
* has the characteristics consumers generally associate with soap,
* does not consist primarily of alkali salts of fatty acids,
it may be identified in labeling as soap, but it is regulated as a cosmetic.
