All color additives used in foods, drugs and cosmetics in the United States must be approved by FDA and listed in the Code of Federal Regulations. In some cases, FDA requires that each batch of color produced for use in regulated products can be used only if it is certified by the agency to meet strict specifications. FDA maintains a laboratory especially for this purpose and color manufacturers must pay a fee to support this activity. FDA only approves colors after extensive review of all safety data and publication of the basis for its approval in the Federal Register.

You can find out more about FDA regulation of colors at:
http://www.cfsan.fda.gov/~dms/cos-col.html

Link to FDA Code of Federal Regulations for Red 40
http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRS...
http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRS...
http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRS...

Red 40 is listed as CI 16035 in the Cosmetics Directive of the European Union and is a coloring agent allowed for use in all cosmetics and personal care products without restriction (see Annex IV). When used in cosmetic products in the European Union, this ingredient must be called CI 16035.
Link to the EU Cosmetics Directive:
http://ec.europa.eu/consumers/sectors/cosmetics/documents/di...

You can learn more about the regulation and labeling of colors at: http://www.personalcarecouncil.org/colors-cosmetics-regulati...

Red 40 is identified chemically as the disodium salt of 6-hydroxy-5-[(2-methoxy-5-methyl-4-sulfophenyl)azo]-2-naphthalenesulfonic acid. Red 40 is freely soluble in water at all pHs and forms a deep yellowish-red color. It is stable to light and heat and can be used in a wide variety of products and formulations.