Glossary · Business & Sourcing
What Is NDA (Non-Disclosure Agreement)?
An NDA, or non-disclosure agreement, is the contract that obliges parties to keep specified information confidential. In cosmetics sourcing it protects formulas, cost structures and launch plans during sampling and quotation, and it should be signed before a factory receives a competitor's sample for reverse engineering.
Why it matters when you source
An NDA signed early costs nothing; a formula disclosed before one exists cannot be recalled. Check that it names the information covered, the duration and the parties' group companies — a one-page NDA that covers everything usually protects nothing.
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