You must consider several important rules and regulations if you sell cosmetics in Australia. Many of these regulations relate to how you label your cosmetic products. Therefore, non-compliance with these rules can result in heavy fines or penalties. These penalties will vary depending on whether you sell your products as an individual or a company. This article will outline the key legal regulations to be aware of if you sell cosmetics in Australia.
What Are Cosmetics?
Under Australian law, a cosmetic is a substance or product a person applies to their body for a specific purpose.
For example, this purpose might be to:
- clean;
- apply a particular scent; or
- change the appearance of the body.
As a result of this purpose-driven definition, even if you describe your products as ‘natural’, they may still be classified as cosmetics under the law. Common examples of cosmetics include:
- lipstick;
- nail care products;
- toothpaste;
- perfumes;
- make-up;
- make-up remover; and
- hair dye.
Obligations if You Plan to Sell Cosmetics in Australia
You will face certain legal obligations if you plan to sell cosmetics in Australia. However, some obligations only apply to businesses that bring cosmetics into Australia, such as manufacturers and importers. These businesses must register with the Australian Industrial Chemicals Introduction Scheme (AICIS). AICIS is the regulatory body for industrial chemicals in Australia and evaluates the safe use of all industrial chemicals.
Once registered, suppliers and manufacturers must ensure that all ingredients in their cosmetic products are either:
- listed on the Australian Inventory of Chemical Substances; or
- currently with AICIS for assessment.
They must also:
- submit pre-introduction reports before chemicals are imported or manufactured;
- provide annual declarations of relevant information; and
- comply with general record-keeping obligations.
Generally, these obligations will not apply if you are a retailer of cosmetic products manufactured in Australia. However, as a retailer, you must still comply with any labelling or other requirements for cosmetics.
Continue reading this article below the formLabelling Requirements
Australia also has strict information standards about what information cosmetic labelling must include, enforced by the Australian Competition and Consumer Commission. The labelling requirements aim to reduce the risk of customers unintentionally exposing themselves to ingredients causing allergic reactions.
There are some exceptions to these standards. For example, the information standards do not apply to:
- goods manufactured in Australia for export;
- hand sanitisers that are excluded goods as per the Therapeutic Goods Act 1989;
- therapeutic goods; and
- free samples or testers of a cosmetic product.
One of the most critical packaging requirements is clearly listing all ingredients. Typically, you must list the ingredients in a cosmetic product on:
- the product container; or
- the product itself if the product is not in a container.
Suppose neither of these options is possible due to the product’s size, shape or nature. In that case, you must list the ingredients in another way that allows the customer to see what the product contains easily.
Cosmetic or Therapeutic for Anti-Bacterial Products
When labelling your product, the claims you make about what your product can do will determine whether the product is regulated as a cosmetic or a therapeutic good. The impacts of COVID-19 have raised particular questions concerning the requirements surrounding labelling of anti-bacterial products and sanitisers and whether they are within the ambit of AICIS or the Therapeutic Goods Administration (TGA).
AICIS considers ‘antibacterial skin care products’ to be products applied to the skin’s surface and contain ingredients that destroy bacteria or suppress their growth or ability to reproduce. Various factors will determine whether an antibacterial product is regulated as a therapeutic good or a cosmetic, including:
- product advertisements;
- presentation for supply;
- ingredients; and
- claims the brand makes about the product’s intended use.
How to Avoid Anti-Bacterial Regulation as a Therapeutic Good
To avoid having your anti-bacterial product regulated as a therapeutic good, AICIS provides that you must not advertise or present your products as being:
- active against viruses, fungi or other microbial organisms (other than bacteria);
- for use in connection with disease, disorders or medical conditions;
- active against a named bacterium that is known to be associated with a disease, disorder or medical condition;
- for use in connection with piercing of the skin or mucous membrane, for cosmetic or any other purpose;
- for use in connection with any procedure associated with the risk of transmission of disease from contact with blood or other bodily fluids;
- for use before physical contact with a person who is accessing medical or health services, or who is undergoing any medical or health care procedure; or
- for use in connection with a venepuncture procedure or injection delivery.
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Penalties for Not Complying
Failure to comply with the information standards is an offence under the law with heavy penalties. The maximum fines are:
- $50 million for companies; and
- $2.5 million for individuals.
Furthermore, your products may face recalls if they do not comply with the information standards.
Suppliers of cosmetic products have mandatory reporting obligations. This means that a supplier must notify the Commonwealth Minister within two days of becoming aware that a product they supply may be associated with a:
- death;
- serious injury; or
- illness.
The maximum fines for not reporting an incident are:
- $16,650 for companies; and
- $3,330 for individuals.
Key Takeaways
If you intend to start selling cosmetics in Australia, you must comply with strict legal regulations. These regulations relate to:
- which chemicals the cosmetics contain; and
- the cosmetics’ packaging and ingredient lists.
You could face heavy penalties if you do not comply with these regulations. For more information regarding your regulatory obligations, our experienced advertising compliance lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
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