Key Takeaways from Health Canada’s Cosmetic Compliance Verification Project

by | Aug 14, 2026 | Canadian Regulatory, Cosmetics, Health Canada Updates

Health Canada has released the results of its 2024-2025 Compliance Verification Project, which focused on cosmetic products containing eucalyptus oil. The initiative conducted under the Food and Drugs Act and the Cosmetic Regulations, evaluated whether products on the Canadian market compiled with labeling, notification, and ingredient requirements, including conditions outlined in the Cosmetic Ingredient Hotlist for eucalyptus oil.

Inspectors reviewed 96 cosmetic products, including 41 imported products, through both online and in-person inspections. The findings underscore the importance of regulatory compliance:

  • 35 products were found to be compliant
  • 31 products required companies to commit to corrective actions
  • 30 products were subject to stop distribution measures due to non-compliance

The most common deficiencies involved labeling non-compliance, while several products also failed to meet Cosmetic Notification requirements. These findings reinforce that Health Canada continues to prioritize accurate product labeling and ingredient disclosure, particularly for ingredients with specific conditions of use such as eucalyptus oil.

For cosmetic manufacturers, importers, and brand owners, this report serves as an important reminder that compliance extends beyond formulation. Companies should ensure that products meet the requirements of the Food and Drugs Act, the Cosmetic Regulations, and the Cosmetic Ingredient Hotlist, including:

  • Accurate bilingual labeling and mandatory label information
  • Timely submission of Cosmetic Notifications
  • Compliance with ingredient-specific restrictions and cautionary statements
  • Regular reviews of imported products to ensure Canadian regulatory requirements are met before market entry

Although HC notes that Compliance Verification Projects target products considered more likely to be non-compliant and therefore do not represent the overall Canadian marketplace, the results demonstrate that deficiencies can result in significant business impact, including stop-sale and stop-distribution actions. For companies operating in Canada’s cosmetics market, proactive label reviews and regulatory audits remain one of the most effective ways to reduce compliance risk.

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