The short answer

In Australia a product is regulated as a cosmetic if it cleanses, moisturises, perfumes or changes appearance. The moment it claims to treat, prevent or cure something, it becomes a therapeutic good and needs to be on the ARTG. The difference is usually one verb.

Most retailers never think about this until a supplier hands them a shelf talker.

The label is careful. The shelf talker isn't. And the shelf talker is the thing sitting in your shop with your name behind it.

Where the line actually sits

The test is what the product is represented to do — not what's in it.

Cosmetic territory. Cleanses. Moisturises. Softens. Protects against dryness. Perfumes. Conditions. Improves appearance. Soothes dry skin.

Therapeutic territory. Treats. Prevents. Cures. Relieves a named condition. Heals. Reduces inflammation. Kills bacteria. Anything naming a disease.

Same jar of balm. "Moisturises and protects dry skin" is a cosmetic claim and needs no listing. "Relieves dermatitis" is a therapeutic claim and requires the product to be entered on the Australian Register of Therapeutic Goods.

A handful of things sit in between and are handled specifically in the regulations — sunscreens, anti-dandruff products, antibacterial skin washes. If a product is in one of those categories, don't reason from first principles, ask the supplier for its status.

Why this lands on the retailer

Two separate exposures, and buyers usually only know about one.

Therapeutic goods advertising. The Therapeutic Goods Advertising Code applies to advertising, and a retailer displaying or repeating a claim is advertising it. "The supplier gave us the sign" is not a defence in itself.

Australian Consumer Law. Misleading or deceptive conduct applies to whoever is doing the misleading, and that includes a shop repeating a claim it didn't verify.

The practical consequence is small and cheap: you want the supplier's claim basis in writing, on file, from onboarding. One email. It's the document that shows you took reasonable steps.

What to actually check when a range comes in

  • Read the pack, then read the sales material. They diverge more often than you'd think, and the sales material is usually the problem.
  • If any therapeutic claim appears anywhere, ask for the AUST L or AUST R number and check it.
  • Look at the shelf talkers, posters and social tiles the supplier provides. These are advertising and they're going up in your shop.
  • Watch for condition names. Eczema, psoriasis, dermatitis, acne, arthritis. Any of those on a product not listed on the ARTG is a red flag.
  • Watch for "antibacterial" and "antiseptic" on a general skincare product. Those are therapeutic claims.

The thing suppliers do that catches people

A very common pattern: a compliant label, and marketing copy that quietly does the work the label can't.

The pack says "soothes and protects dry skin". The website says the product is "known to help with eczema and minor burns". Both come from the same supplier, and only one would survive a complaint.

If you're stocking the range, the second one is what your customers read and what your staff repeat.

A note on what good looks like

The suppliers who handle this well tend to do three things: they use the same wording on the pack and in the sales material, they'll send you the claim basis without being chased, and they train their reps not to freelance.

The ones who handle it badly usually aren't malicious. They've written marketing copy without anyone checking it against the regulations.

OGA's range is sold on cosmetic claims — moisturising, soothing dry skin, protecting, everyday oral care — and the wholesale pack states the claim basis for each product. We don't make therapeutic claims for the range, and we'd rather a buyer knew that upfront than found out from a shelf talker.


Frequently asked

What is the difference between a cosmetic and a therapeutic good in Australia? A cosmetic cleanses, moisturises, perfumes or changes appearance. A therapeutic good is represented as treating, preventing or curing something, and must be entered on the Australian Register of Therapeutic Goods. The distinction turns on what the product is claimed to do.

Can a retailer be liable for a supplier's claim? Yes. Displaying or repeating a claim is advertising it, which brings the Therapeutic Goods Advertising Code into play, and Australian Consumer Law applies to misleading conduct by whoever engages in it. Keeping the supplier's written claim basis on file is the practical protection.

Is "antibacterial" a cosmetic claim? Generally no. On a general skincare product it reads as a therapeutic claim and would normally require the product to be listed.

What is an AUST L number? The identifier for a product listed on the ARTG. Listed medicines carry AUST L, registered ones AUST R. If a supplier makes therapeutic claims, ask for the number.

Where do sunscreens sit? Sunscreens are handled specifically in the regulations rather than by the general cosmetic test. Ask the supplier for the product's regulatory status rather than assuming.


This article is general information for retail buyers and is not legal advice. For a specific product or claim, get advice on your own circumstances. OGA supplies pharmacies, gift and tourism retail, online retailers, clinics and distributors — for the wholesale catalogue, make an enquiry.