Private Labeling...do I need them to sign a waiver?

[jtbailey1030]

Hello!

I recently got a call from a salon in South Jersey that wants to buy my soaps as private label. She will be buying naked soap at wholesale prices and designing her own label for them.

My question is this: I know the FDA requires all ingredients to be put on the labels, the address of the business, etc... If she DOESN'T follow the correct guidelines, am I ultimately still liable for my product once I sell them to her?

She will be signing my standard wholesale agreement, but I'm wondering if I need to have her sign something that says I am no longer responsible for the product once they are sold. Any input would be appreciated, and even help with wording is welcome!

Thanks!

 

[shunt2011]

I searched and found a couple older posts regarding private label. If she'd purchasing the soap naked and selling them herself with her own labels I believe she is responsible. However, I also read that some have requested that it be stated on the label made by xxxxx for (her business). Now, I could be wrong. I've not done private label yet.

 

[Lindy]

I do a lot of private label here in Canada and it is my understanding that the States has the same regs on this. You as the manufacturer always has responsibility of your product, even though your name does not appear on the label. I charge an extra fee for private label that is a one time charge to set up the account. I charge $350 and I do get it. I think I have lost one private label on that point and it was my fault because I forgot to tell them up front that the fee existed.

 

[jtbailey1030]

Hi Lindy,

Thanks for reply. So why the $350 charge and where do you get that number from? What exactly is the $350 giving you or is it a convenience charge for the idea of private label? Are you designing and printing their labels for them? This woman doesn't need my design services, she just wants the soap.

 

[houseofwool]

When private labeling, you are spending time creating a new label, usually this is several hours of time working with the files, not to mention sending out electronic proofs, making changes, etc.

It is a fair amount of work.

Additionally, you may need to pull from inventory that is already labeled, take those labels off, and put the new ones on. More time and materials lost.

 

[Lindy]

I design and print the labels. Plus here in Canada I need to register the formula and the Private Label Customer with Health Canada. Sometimes there is a fair amount of back and forth about what fragrances they want and other times there are sample fragrances to be sent out.