CIR Safety Review: The PEG Lanolin and PEG Hydrogenated Lanolin ingredients were found to be nontoxic in acute oral, dermal, and inhalation studies at varying concentrations. They caused little or no eye irritation at concentrations of 50-100%. PEG Lanolins at 10-100% caused mild or negligible skin irritation and were reported to be nonsensitizing. PEG Lanolins were reported to be nonirritating and nonsensitizing in patients at concentrations from 10-60%. Data on the components of these ingredients provided no evidence of mutagenicity, carcinogenicity or developmental toxicity.

Small amounts of 1,4-dioxane, a by-product of ethoxylation, may be found in the PEG Lanolate ingredients. The potential presence of this material is well known and can be controlled through purification steps to remove it from the ingredients before blending into cosmetic formulations.

Link to more information about what the Food and Drug Administration (FDA) is doing to assure that cosmetics do not contain unsafe levels of 1,4-dioxane.
http://www.fda.gov/Cosmetics/ProductandIngredientSafety/Pote...

When conforming to European Union animal by-products legislation, PEG Lanolin ingredients may be used in cosmetics and personal care products marketed in Europe according to the general provisions of the Cosmetics Directive of the European Union.
Link to the EU Cosmetics Directive: http://ec.europa.eu/consumers/sectors/cosmetics/documents/di...

The PEG Lanolin ingredients are the polyethylene glycol ethers of whole lanolin. In cosmetics and personal care products, PEG Lanolins are used as skin conditioning agents - emollients and surfactants (auxiliary oil/water emulsifiers). When added to detergents, they minimize defatting action on skin and hair while not affecting the cleansing action. PEG Lanolins impart the same properties to cosmetics and personal care products as lanolin, but because of their higher solubility in water and alcohol, they can be included in a greater variety of products.