How To Start A Supplement Business In New Zealand: Legal Checklist

Starting a supplement business can be a great way to build a brand in a fast-growing industry - whether you’re formulating your own products, importing finished stock, or launching an online subscription model.

But supplements sit in a tricky space legally. You’re selling products that can affect people’s health, you’ll be marketing performance or wellness benefits, and you’ll likely collect customer data online. If you don’t set things up properly from day one, you can end up dealing with expensive product issues, misleading advertising complaints, or disputes with manufacturers and suppliers.

Below is a practical legal checklist for supplement business owners in New Zealand. It covers the key legal foundations to get right before you launch (and what to tighten up as you scale).

1. Choose The Right Business Structure (And Protect Yourself From Personal Liability)

Before you order stock or build your website, decide how you’re going to operate legally. Your structure affects your tax position and your ability to bring on investors, and (importantly) whether you’re personally on the hook if something goes wrong.

Note: The right structure can have tax implications, so it’s a good idea to also speak with an accountant or tax adviser about your specific circumstances.

Sole Trader

This is usually the simplest way to start.

• You run the business personally under your own name (or a trading name).
• You generally don’t have a separate legal entity protecting you from business debts or claims.
• This can be higher risk for a supplement business, where product complaints and refunds can escalate quickly.

Company

A company is a separate legal entity, which can help manage risk as you grow.

• You can generally limit personal liability (though directors still have duties and can be personally liable in some circumstances).
• It can be easier to bring on shareholders or investors later.
• It can look more “established” to suppliers, distributors, and wholesale partners.

If you’re setting up a company, it’s also worth thinking early about governance documents like a Company Constitution, especially if you’ll have co-founders or investors.

Partnership (Use With Care)

If you’re starting with a friend or family member, you might assume a partnership is easiest. The main risk is that partners can be jointly responsible for the business’s obligations.

If you’re going into business with someone else, a written Partnership Agreement can help prevent disputes about things like decision-making, money, roles, and what happens if someone wants out.

Tip: In supplements, it’s common for founders to have different roles (marketing vs formulation vs operations). Sorting expectations upfront saves stress later.

2. Product Compliance: Is Your Supplement Regulated As A Food, Medicine, Or Something Else?

This is where supplement businesses often get caught out. Your product’s ingredients, form (capsule, powder, drink), claims, and how it’s presented can change which rules apply.

In New Zealand, supplements can fall into different regulatory categories (including foods and dietary supplements). The legal requirements can vary depending on:

• the ingredients (including restricted substances or high-dose vitamins/minerals)
• the format and dosage
• the claims you make (especially therapeutic claims)
• whether you manufacture locally or import
• whether you sell direct-to-consumer or wholesale

Depending on how your product is classified, you may need to consider different regulators and legal frameworks. For example, food-type products are often regulated under the Food Act 2014 and relevant parts of the Australia New Zealand Food Standards Code (FSANZ), with oversight commonly involving the Ministry for Primary Industries (MPI) and local councils. If your product is presented as having therapeutic benefits (for example, claims about treating or preventing illness), it may raise issues under medicines legislation and regulators such as Medsafe (within the Ministry of Health), including the Medicines Act 1981 and related rules.

Because classification can be nuanced, it’s usually worth getting specific advice before you spend money on packaging or marketing campaigns.

Manufacturing, Quality, And Supply Chain Risk

If you’re manufacturing (or white-labelling) supplements, you’ll want to be clear on:

• who is responsible for quality testing and batch records
• what specifications apply to ingredients and finished product
• what happens if there’s contamination, a defect, or a recall
• who pays for rework, refunds, and reputational damage

These issues are often managed through a properly drafted supply or manufacturing contract (templates rarely cover recall risk in a way that actually protects you).

Labelling And Packaging Requirements

Even if your product formula is sound, labelling mistakes can create legal and commercial headaches. From a legal risk perspective, you want your label and marketing to match what the product actually does, and to clearly disclose what’s inside.

This usually includes careful attention to things like:

• ingredient lists
• allergen statements (where relevant)
• serving sizes and directions for use
• storage instructions
• country of origin and importer details (if importing)

3. Advertising And Claims: Comply With The Fair Trading Act (Especially Online)

Marketing is everything in supplements - but it’s also one of the fastest ways to end up in trouble.

In New Zealand, the Fair Trading Act 1986 prohibits misleading and deceptive conduct. That includes ads that give customers the wrong impression, even if you didn’t intend to mislead.

For supplement businesses, higher-risk areas often include:

• before-and-after photos or transformations without proper context
• statements like “clinically proven” without solid evidence
• claims implying your product treats, prevents, or cures medical conditions
• testimonials that suggest results are typical when they’re not
• “limited time” sales that aren’t actually limited

It’s also important to consider New Zealand’s advertising rules and industry codes that apply to health and wellness marketing (including where influencers are involved), alongside your legal obligations.

Practical checklist: before publishing ads (including social media posts), ask yourself:

• Can you back this claim up with evidence?
• Could an average customer interpret this as a health or medical promise?
• Are the results you’re showing likely to be typical?
• Are you disclosing key terms clearly (price, shipping, subscription renewals, restrictions)?

If you’re selling online, your terms also matter. If customers can’t easily understand pricing, delivery expectations, or refunds, that can increase the risk of disputes (and negative reviews that spiral).

4. Get Your Website Legals Right (Terms, Refunds, And Privacy)

Most supplement brands start online - Shopify store, social media ads, and a courier account. That’s great for scaling, but it also means you’re contracting with customers remotely and collecting personal information.

This section of your supplement business legal checklist is about making sure your customer-facing documents match how you actually operate.

Website Terms And Conditions (And Subscription Terms)

If you sell supplements online, your website terms should clearly cover:

• how orders are placed and accepted
• payment, pricing errors, and promotions
• shipping timeframes and what happens if parcels are delayed
• returns and refunds process
• subscription billing rules (if you have a recurring plan)
• limitations of liability (to the extent allowed by law)

Having proper eCommerce terms is also useful if you ever deal with chargebacks, “item not received” claims, or customers trying to return opened products.

Privacy Compliance Under The Privacy Act 2020

If you collect customer names, emails, delivery addresses, or payment-related details (even indirectly via platforms), you’re dealing with personal information.

Under the Privacy Act 2020, you need to take reasonable steps to protect personal information and be transparent about what you collect and why. In practice, most online supplement businesses should have a clear Privacy Policy on their website.

Your privacy setup should also align with your email marketing habits (for example, how you collect newsletter sign-ups and how customers opt out).

Returns, Refunds, And Consumer Guarantees

Even if you include “no refunds” wording, you still have obligations under the Consumer Guarantees Act 1993 when you sell to consumers in New Zealand.

Supplements can be a bit more complex because of hygiene and safety concerns, but the general rule is: if the product is faulty, not as described, or not fit for purpose, customers may be entitled to a remedy.

It’s smart to have a clear returns/refunds process that’s consistent with the law, your packaging, and your internal handling procedures. The clearer you are upfront, the fewer disputes you’ll have later.

5. Protect Your Brand And Product IP (Before Someone Else Does)

In the supplement space, branding is often your biggest asset. Your formulations might evolve over time, but your name, logo, packaging style, and customer trust are what drive repeat purchases.

Trade Marks: Your Business Name, Product Names, And Logo

Registering a trade mark can help stop others from using the same (or confusingly similar) brand in your category.

Many founders only look into trade marks after they’ve built a following - but by then, you might find someone else owns the name, or you’re at risk of infringement.

If you want to protect your brand properly, you can look at trade mark registration early, particularly for:

• your main brand name
• your hero product name(s)
• your logo

IP In Product Development And Contractor Work

It’s common to hire freelancers for:

• label and packaging design
• website build
• photography and product videos
• formulation consulting

Make sure your contracts clearly say who owns the intellectual property created. Without the right clauses, the person who created the work might retain rights, which can become a real problem when you want to scale, sell, or franchise.

6. Contracts And Risk Management: The Legal Documents Supplement Businesses Commonly Need

When you’re building a supplement brand, contracts aren’t just “paperwork” - they’re how you make sure you get paid, protect your formulas and brand, and reduce the chance of a dispute turning into an expensive mess.

Here are the legal documents many supplement businesses need (depending on how you operate).

Supplier / Manufacturing Agreements

If someone else manufactures your products (locally or offshore), a written agreement should ideally cover:

• product specifications and approved ingredients
• quality assurance, testing, and batch documentation
• lead times and delivery terms
• who is responsible for non-conforming goods
• recall process and cost allocation
• confidentiality and IP protection

Terms Of Trade (If You Sell Wholesale)

If you sell to gyms, retailers, or distributors, your wholesale terms help manage:

• minimum order quantities and pricing
• payment terms (and what happens if a customer doesn’t pay)
• delivery risk and title to goods
• limitations of liability
• returns processes

Founder And Shareholder Documents (If You’re Building With Others)

If you’re not going solo, document the relationship early - before money gets tight or expectations drift.

Depending on your structure, that might mean a Founders Agreement or a Shareholders Agreement to cover things like:

• who owns what (and whether equity vests over time)
• who makes decisions day-to-day
• what happens if someone wants to leave
• how disputes are handled

This is especially important in supplements, where one founder might be the “face” of the brand and another might be handling operations - you’ll want clarity so the business can keep running if circumstances change.

Employment And Contractor Agreements (If You’re Hiring)

As you grow, you might hire staff for packing orders, customer support, or sales.

Having a written Employment Contract helps set expectations about pay, duties, confidentiality, and termination rights. If you engage contractors (for marketing, admin, or content), you’ll also want a contractor agreement that covers IP ownership and confidentiality.

Influencer, Ambassador, And Affiliate Agreements

Influencer marketing is huge in supplements. If you’re paying (or offering commission or free product), you should consider having a written agreement to cover:

• what content must be delivered, and when
• approval rights and brand guidelines
• what claims they can and can’t make
• IP rights in the content they produce
• termination (especially if there’s reputational risk)

It’s also a good way to make sure your ambassadors don’t accidentally make problematic claims that expose your business to risk.

Key Takeaways

• A strong supplement business legal checklist starts with choosing the right business structure, because personal liability risk can be higher in health and wellness products.
• Supplements can be regulated differently depending on ingredients and marketing claims, so it’s important to confirm your product classification and compliance requirements early (including which regulators and frameworks apply, such as Medsafe/medicines rules or food law and the FSANZ Code).
• Your advertising needs to comply with the Fair Trading Act 1986, and you should be able to substantiate any performance or wellness claims you make.
• If you sell online, you should have customer-facing legals in place, including website terms and a Privacy Act 2020-compliant Privacy Policy.
• Make sure your refunds and returns approach aligns with the Consumer Guarantees Act 1993, even if you have hygiene or safety limitations.
• Protect your brand early with trade marks and clear IP ownership clauses in freelancer and contractor agreements.
• Well-drafted contracts with manufacturers, suppliers, wholesale customers, and ambassadors can reduce disputes and help protect your business as you scale.

If you’d like help getting your supplement business set up properly, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.