Cosmetic or Therapeutic? Why It Matters for Influencers

Cosmetic or Therapeutic? Why It Matters for Influencers

Launching a skincare, wellness, or beauty product in Australia can seem straightforward—until you’re faced with the legal distinction between a “cosmetic” and a “therapeutic good.” This classification isn’t always intuitive, yet it carries significant regulatory consequences. Businesses of all sizes need to be aware: the line between a cosmetic (like a simple moisturiser) and a therapeutic good (such as a cream that claims to treat eczema or visibly reverse ageing) is not just about marketing style but can determine whether your product is subject to strict rules, pre-approval, or even recall.

In today’s highly connected world, these differences are even more critical.

Misclassification can not only lead to legal penalties but can also impact how you advertise—especially across social media platforms or when collaborating with influencers.

So how do businesses spot the difference?

The answer lies in a close review of how your product works, what ingredients it uses, and—most importantly—the specific claims you make on packaging and in your advertising.

For example, a lotion that claims to “hydrate the skin” would generally remain a cosmetic, while the same lotion claiming to “treat eczema” or “repair skin” may cross into the territory of therapeutic goods and require registration with the Therapeutic Goods Administration.

Because so many products sit near the dividing line and regulations change quickly, businesses should be careful to assess each product individually—especially before launching new promotions or working with influencers online.

In these situations, tailored legal advice makes all the difference for compliance and commercial safety

What’s the Legal Difference?

In Australia, cosmetic goods are typically products designed to clean, beautify, perfume, or protect the skin, hair, or nails—like everyday moisturisers, shampoos, or lipsticks. They’re about appearance and hygiene, not medically treating the body. Cosmetic products cannot claim to heal, cure, or alter bodily functions.

Therapeutic goods, in contrast, are regulated by the Therapeutic Goods Administration (TGA) and include medicines, medical devices, and health-related products that treat, prevent, diagnose, or affect how the body works—for example, sunscreens with SPF claims, eczema creams, or anti-fungal treatments.

But how do you decide when a product crosses from cosmetic to therapeutic? How do ingredient lists, marketing claims, and intended uses influence this? Are anti-ageing creams or cellulite treatments cosmetic, or therapeutic? What if a product claims to “stimulate collagen” or “reduce the appearance of wrinkles”?

These questions are not always easy to answer.

The classification depends on many factors, including product claims, ingredients, and how it is presented to consumers.

Getting it wrong can lead to serious consequences, from regulatory fines to product recalls.

Australia has seen legal action over these distinctions. For instance, the Therapeutic Goods Administration has taken companies to court for supplying unapproved therapeutic goods or making unlawful advertising claims.

A key example in Australia is the Peptide Clinics case, where Peptide Clinics Australia faced the Federal Court and the Therapeutic Goods Administration for misleading advertising of prescription-only medicines .The court imposed a $10 million penalty because the company breached mandatory rules, including the strict ban on advertising prescription-only medicines to the public.

The Federal Court found that Peptide Clinics deliberately put financial self-interest above its legal obligations and public health. This case is a clear reminder to businesses: not complying with the Therapeutic Goods Act and Therapeutic Goods Advertising Code—especially around advertising medicines—can attract substantial penalties and reputational damage.

Because of this complexity and the severe consequences of mistakes, it’s important to seek expert legal advice when launching or marketing products that may be cosmetic or therapeutic. This ensures compliance and helps avoid costly regulatory issues.

Is This Complicated?

It’s rarely a simple “yes” or “no.” Businesses must look at:

When deciding if your product is a cosmetic or a therapeutic good in Australia, several tricky questions come up—and they matter for every business:

• Product claims: Is the label promising to “treat,” “heal,” or scientifically change the body? Or is it just aimed at making your skin feel smoother, cleaner, or more beautiful? This language is the first thing regulators (and lawyers) check.
• Ingredients: Is your product using a registered medicine or powerful active ingredient (like prescription retinoic acid), or is it simply blending cosmetic-grade hydrators and botanicals?
• Intended use and marketing: Is your cream meant for everyday beauty, or does it claim to fix, heal, or prevent medical problems like eczema or sun damage?

If a cosmetic product starts making claims that cross into “therapeutic territory” through packaging or advertising—such as “repairs skin DNA” or “eliminates cellulite”—that product risks being reclassified.

This means you’d need to provide scientific evidence, safetydata, and get approval from the Therapeutic Goods Administration (TGA).

Because these rules aren’t always black and white, manyAustralian businesses are left with practical challenges:

• Should you update your label or tone down your web claims before launch?
• Will your campaign be subject to a recall or fine if regulators disagree with your classification?
• How do you keep up with different regulations from the ACCC, the TGA, and the Australian Industrial Chemicals Introduction Scheme (AICIS)?

This is the kind of regulatory grey area is exactly why professional advice that we can assist with.

Tell me about the new Social Media and Influencer Rules for Therapeutic Goods

This is a game-changer for modern businesses.

When it comes to promoting therapeutic goods in Australia—especially on social media or through influencers—it’s not always clear what’s allowed and what isn’t. There are plenty of grey areas and evolving rules. For example:

Can influencers talk about their personal journey with your product, or do the rules limit what sorts of stories or testimonials can be shared? What sort of endorsements are acceptable, and who can—legally—give them? Are health professionals like doctors and pharmacists held to even stricter standards? What responsibilities do businesses have when it comes to monitoring or removing misleading comments or posts?

It isn’t just about the claims being made, either.

There are extra layers: What are the approved uses for your product? Should your social media content match the official TGA product listing word-for-word, or is there room for creativity?

What about warnings, disclaimers, and information that must be provided?

If you’re not sure what the rules require for your productor your campaign, it’s wise to get advice tailored to your situation before launching.

The risks include fines, product removal, and damage to your reputation.

Why Businesses Need Lawyers for Compliance

Given all these moving parts—legal definitions, ingredient lists, shifting claims and strict advertising codes—lawyers are essential.

We can help you:

1. Decide if a product is legally a cosmetic or therapeutic good.
2. Review every label, ad, influencer contract and social campaign before launch.
3. Watch over ongoing marketing for new risks or updates in laws.
4. Protect against accidental breaches, wasted investment, and serious legal blowback.

Getting it right saves money, protects the brand.

Don’t Leave It to Chance

If your product could be a cosmetic or a therapeutic good, get legal help early. Don’t risk costly missteps. The right advice makes for safer products and smarter marketing.
Need help? Contact Sharon Givoni Consulting for clear, actionable advice.

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Please note the above article is general in nature and does not constitute legal advice.

Please email us info@iplegal.com.au if you need legal advice about your brand or another legal matter in this area generally.