Confidential Business Information
Section II(b)(iii) of CSPA’s and ACI’s Initiative provides that ingredients may be listed by their chemical function and/or chemical class descriptors "where needed for protection of confidential business information."
Under this program, participants are not required to disclose information that has been claimed as confidential business information (CBI) under existing law or private contractual agreements.
In determining whether an ingredient should be considered CBI, participants should look to existing federal and state law for guidance.
Federal law governing the confidentiality procedures for cosmetic ingredients (21 CFR §720.8) lists several factors that should be considered in determining whether the identity of an ingredient qualifies as CBI:
a. The extent to which the identity of the ingredient is known outside the [Participant’s] business;
b. The extent to which the identity of the ingredient is known by employees and others involved in [Participant’s] business;
c. The extent of measures taken by the [Participant] to guard the secrecy of the information;
d. The value of the information about the identity of the claimed trade secret ingredient to the [Participant] and to its competitors;
e.The amount of effort or money expended by [Participant] in developing the ingredient; and
f. The ease or difficulty with which the identity of the ingredient could be properly acquired or duplicated by others.
Some states have similar laws. The New Jersey Worker and Community Right to Know Act (N.J.S.A. 34:5A-1 et seq.) identifies the following factors in determining whether information is a valid trade secret:
a. The extent to which the information for which the trade secret claim is made is known outside the employer’s business;
b. The extent to which the information is known by employees and others involved in the employer’s business;
c. The extent of measures taken by the employer to guard the secrecy of the information;
d. The value of the information to the employer or the employer’s competitor;
e. The amount of effort or money expended by the employer in developing the information;
f. The ease or difficulty with which the information could be disclosed by analytical techniques, laboratory procedures, or other means.