What is Natural Soap?
"Natural," "All Natural," and the like, are not regulated terms. There is no standard definition, and therefore, many forms of sneakiness exist on the internet where these terms are used. Some companies claim that NO SOAP is natural, whereas others attempt to prove just how natural their product is. Many sites devote entire PAGES to this discussion, pleading their case that they ARE natural, where others vilify any soaper trying to use the term.
Our advice, is to be aware of what your customers expect a "natural" product to be, and DON'T mislead them. Nothing does more to hurt your sales than misrepresenting your product to your customer. If you feel so inclined, add a definition on your site of what "Natural" means to YOU.

Additionally, remember that "chemical sounding" names can be natural, too.  INCI (International Nomenclature of Cosmetic Ingredients) is an international cosmetic naming system, based on Latin, that is required by law in many countries, and often shows up on ingredient labels. Please resist the urge to claim that you make "chemical free" products simply because you use pronounceable ingredients on your label. "Chemical Sounding" ingredients are often just natural ingredients obscured by their INCI name. For example, coconut oil that has been turned into soap is called "sodium cocoate" in INCI terminology.

FDA Regulations affecting your Soap Sales....
Cut and Pasted from:

http://www.fda.gov/Cosmetics/ProductandIngredientSafety/ProductInformation/ucm115449.htm

"Ordinary soap is solely made up of fats and an alkali...Today there are very few true soaps in the traditional sense on the market. You might recognize these soaps as products marketed with characteristics such as "pure." "True" soaps are regulated by the Consumer Product Safety Commission, not FDA, and do not require ingredient labeling."

"If a cosmetic claim is made on the label of a "true" soap or cleanser, such as moisturizing or deodorizing, the product must meet all FDA requirements for a cosmetic, and the label must list all ingredients. If a drug claim is made on a cleanser or soap, such as antibacterial, antiperspirant, or anti acne, the product is a drug, and the label must list all active ingredients, as is required for all drug products."

Therefore, soapcrafters should beware of terms such as "moisturizing," "conditioning," "skin-softening," as these all mean that you intend for your soap to be making a PHYSICAL CHANGE in the skin it is being applied to. Your product will effectively become a "Cosmetic" or a "Drug" and be subject to applicable FDA labeling laws.

Find those here: http://www.fda.gov/Cosmetics/CosmeticLabelingLabelClaims/default.htm

Organic vs. Made With Organic
Are you interested in marketing your handmade soaps using the terms "Organic" or "Made with Organic?" Learn here about the US Department of Agriculture's National Organic Program (NOP) and The Organic Foods Production Act 1990 (OFPA). Certification is required in order to use "organic" and "made with organic" on your labels. However, certain exemptions exist for qualified people, such as those selling less than $5000.00 annually in organic products. However, although exempted individuals do not need certification, they do need to have documented proof that they are following national organic standards.

To sum up, it is YOUR responsibility to know and follow all applicable laws concerning your products. While it is highly unlikely that the FDA will come after a small company for "doing it wrong,"  the possibility exists.  Your customers depend on you to provide accurate information (this includes COMPLETE and honest ingredient listings- what if they have an allergy to one of the ingredients that you forgot or decided not to list?), to make safe products (no one wants a moldy bar of soap made in filthy conditions, or a lotion filled with bacteria because you didn't effectively preserve it!), an  follow the rules. Your business reputation is at stake, as is your financial situation, should you become the target of a lawsuit.

Know your ingredients. Make safe products. Be honest in your labeling. Follow the laws.