Cosmetics market is changing around the world dramatically. To do successful marketing one should take care of different consideration such as the current market trends __ampersandsign demands, regulatory framework __ampersandsign compliance requirements, efficacy, etc. Regulations of cosmetics and cosmeceutical industry now a day‘s more stringent. There are different regulatory bodies worldwide having their own regulations to ensure safety of the cosmetic products. The major cosmetic market constitutes of European Union (EU), United States of America (USA (RPA 2004)).The regulations in these territories are used as a model for the developing world. India is quickly catching up the cosmetic market globally and is following its own regulations. The body that governs the cosmetic market in India is CDSCO (Central Drug Standard Control Organization) through the ?Drug and Cosmetic Act, 1940 and Rules 1945?. The cosmetic definition, labeling, safety and stability studies and the legal authority have their own impact on manufacture and sale of cosmetic products. In this research paper we will discuss about the different rules and regulation that govern the cosmetic industry in different countries throughout the world. A comparison has also been made on the basis of legal authority, labeling, testing, safety and stability studies.