The research was conducted at the Université Laval's Faculty of Medicine and the results were presented in the latest edition of the British Journal of Dermatology.
DMAE, known as 2-dimethylameinoethanol, has been dubbed as an 'instant anti-aging face-lift' because of its ability to make skin cells swells up - an action that can help to reduce wrinkles, but one that the scientists say could also be a potential problem because it is not fully understood exactly how it works.
Also used in cosmetics, creams, lipsticks, shampoos, soaps and baby lotions, studies found that application of DMAE to the skin can 'induce a quick and spectacular swelling of skin cell vacuoles called fibroblasts'.
With the compound being used in largely un-regulated anti-aging products, which are in high demand from many female consumers, concerns have been raised that cosmetics do not get the same scientific regulation as food and medication products.
Dr Marceau, a researcher in the study, stated, "Several compounds found in cosmetics are just as complex as medication - they are absorbed through the skin, flow through the bloodstream, are expelled by the kidneys, or stocked in cells or even in the liver. Yet, the laws regulating their use are far less restrictive than those regulating drugs".
More worryingly for anti-aging manufacturers, the study showed that hours after the application of the compound, researchers found that there was an important slowing down of cell division, which sometimes came to a complete stop.
Indeed, further research found that the compound also inhibits certain metabolic reactions and causes the death of a significant percentage of fibroblasts, news that will no doubt cause manufacturers to closely scrutinise the use of the compound in their products.
Furthermore the mortality rate of fibroblasts, varying according to the DMAE concentration, was over 25 per cent after 24 hours in the case of a concentration similar to that used in a normal anti-wrinkle cream.
This in turn lead to the thickening of the skin, which was induced by the pathological swelling of the fibroblasts - thus explaining the potentially worrying cause of the anti-wrinkle effect.
However, researchers taking part in the study, Guillaume Morissette, Lucie Germain and Francois Marceau, did not state that the compound was dangerous for consumers, but highlighted that the results 'indicate it is time to begin serious research to determine whether or not it poses a health risk'.
"Even though DMAE is similar to medication, there is very little scientific documentation about its pharmacological and toxicological effects" Dr Marceau said.