Therapeutic Claims vs. Cosmetic Claims for Private Label Skin Care

Private Label Skin Care offers a cost effective entry point for brands into the skin care market. However, advertising these products demands precision to avoid regulatory pitfalls from the Therapeutic Goods Administration (TGA) and the Australian Competition and Consumer Commission (ACCC). Misworded claims can reclassify a product from cosmetic to therapeutic, triggering stringent approvals, or invite fines for misleading consumers under Australian Consumer Law (ACL). This article explores the distinctions, with tailored advice for wording ads as the brand owner bears the ultimate responsibility for compliance.

Understanding Cosmetic Claims in Australia

Cosmetics in Australia are regulated under the Industrial Chemicals Act 2019 via the Australian Industrial Chemicals Introduction Scheme (AICIS), focusing on ingredient safety, while the ACCC oversees advertising to prevent misleading claims.

These products aim to cleanse, beautify, alter appearance, or maintain the body in good condition without therapeutic intent. Cosmetic claims might include "hydrates for a softer feel" or "enhances skin's natural glow." No pre-market TGA approval is required, but ingredients must be AICIS-compliant, and claims truthful.

Brands should ensure Private Label suppliers provide compliant formulations (we always do), but the retailer is liable for final claims and labelling.

Recent 2025 ACCC updates emphasize substantiating aesthetic claims with evidence like consumer tests to avoid any misrepresentations.

What Are Therapeutic Claims?

Therapeutic claims imply a product diagnoses, treats, prevents, or alleviates a disease, defect, or injury, or modifies physiological processes, classifying it as a therapeutic good under the Therapeutic Goods Act 1989. Regulated by the TGA, these require Australian Register of Therapeutic Goods (ARTG) entry, efficacy proof, and restricted advertising. For creams, examples include "repairs damaged skin cells" or "treats eczema flare-ups." Cosmetic products making such claims face heightened scrutiny, as non-compliance can lead to product seizures or penalties.

Key Differences and Regulatory Implications

The divide hinges on intent, composition, and presentation, with brand owners responsible for ensuring claims don't inadvertently trigger TGA oversight.

Aspect	Cosmetic Claims	Therapeutic Claims
Purpose	Beautify or alter appearance (e.g., "softens skin's texture")	Affect body structure/function or treat conditions (e.g., "treats eczema")
Regulation	ACCC (advertising); AICIS (ingredients); no pre-approval	TGA (listing/registration); evidence required
Examples	"Minimises the appearance of pores," "Leaves skin feeling nourished"	"Cures dry skin," "Boosts collagen to fight aging" “Stimulates collagen production”.
Risks if Misclassified	Fines for misleading ads (up to AUD $50m under ACL)	Product seizure; criminal penalties
Oversight	Post-market (complaints-driven)	Pre- and post-market (active monitoring)

Real-World Examples

Cosmetic: A moisturiser claiming "contains shea butter to moisturise and hydrate the skin" focuses on superficial benefits.

Therapeutic: The same product stating "soothes and repairs psoriasis patches" implies treatment, requiring TGA approval.

In 2024, an ACCC case fined a brand for unsubstantiated "anti-aging repair" claims, highlighting the need for evidence. For creams, "helps your skin look even and smooth" is safe, but "reduces skin pigmentation" is not.

Responsibilities and Compliance

The brand owner (e.g., retailer) is legally accountable under ACL for product quality, safety, and claims, even if a contract manufacturer or Private Label Supplier handles production.

Advice on Wording Cosmetic Cream Advertising for Private Label Products

Crafting ads requires balancing appeal with compliance, substantiating claims via ACCC's evidence hierarchy (e.g., lab data, surveys). Brands can incorporate supplier-provided data but should also verify independently.

1. Prioritise Aesthetic and Sensory Language: Use "feels," "appears," or "looks." E.g., "Our cream hydrates for skin that appears plumper."

2. Add Qualifiers for Safety: Employ "helps," "visibly," or "temporarily." Replace "reduces wrinkles" with "helps minimise the appearance of fine lines."

3. Steer Clear of Medical Terms: Avoid "heals," "treats," or condition references like "acne." Opt for "suitable for all skin types" instead of "balances oily skin."

4. Substantiate and Record: Base claims like "90% felt smoother skin" on studies; retain evidence to defend ACCC inquiries.

5. Audit Multi-Channel Content: Review labels, websites, social media, and influencer scripts. Brands should train partners on compliant phrasing.

6. Consult Experts and Tools: Use TGA's classification tools; engage legal advisors for supply contracts and claim reviews.

These strategies help create compelling, risk-free ads.

Conclusion

For Skin care brands in Australia, mastering therapeutic vs. cosmetic claims ensures market access without regulatory hurdles. As enforcement intensifies, brand owners must own compliance, leveraging precise wording to highlight benefits safely. When unsure, consult tga.gov.au, accc.gov.au, or specialists—prioritising appearance over cure fosters trust and growth.

Some tips how to word cosmetic claims to keep you out of trouble:

Therapeutic Claim Cosmetic Claim

Heals acne Improves the appearance of breakouts / targets congestion / clarifies skin

Treats pigmentation Brightens pigmentation / enhances skin luminosity / improves clarity

Removes pigmentation Helps improve the appearance of pigmentation / brightens skin

Treats melasma Brightens uneven tone /supports a more even-looking complexion

Treats rosacea Helps reduce visible redness / soothes the look of flushed skin

Anti-Inflammatory Helps calm the appearance of skin / soothing treatment

treatment

Treats eczema Supports skin barrier /hydrates and comforts dry or flaky skin

or psoriasis

Heals scars Helps improve the appearance of scars / softens the look of texture

Treats fine lines Improves the appearance of fine lines / supports smoother skin

and wrinkles

Anti-aging treatment Supports skin rejuvenation / enhances radiance and vitality

Treats enlarged pores Refines and minimises the look of pores / improves texture

Heals skin conditions Supports healthier-looking skin /enhances skins' natural rennewal

Medical treatment Non-invasive skin rejuvenation / cosmetic skin enhancement

for skin

Remember: Avoid words like treats, heals, cures, prevents. Use cosmetic, appearance-based language like "improves, brightens, supports, enhances.

If your a member of our website in the members section we have additional resources that help with making appropriate claims and claim substantiations.