Legal Requirements For Selling Homemade Beauty & Skincare Products In New Zealand

Selling products you’ve made yourself can be a genuinely exciting way to build a brand - especially when you’re creating beauty and skincare products people love using every day.

But if you’re selling homemade beauty and skincare products, you’re also stepping into a space where customers expect safety, clear labelling, and honest marketing. The legal side can feel a bit overwhelming at first, but don’t stress - once you know what rules apply, it’s completely manageable.

Below, we’ll walk through the key legal requirements and practical compliance tips for small businesses selling homemade beauty and skincare products in New Zealand, whether you’re selling online, at markets, through salons, or to retailers.

What Laws Apply When You’re Selling Homemade Beauty And Skincare Products?

In New Zealand, there isn’t one single “cosmetics law” that covers everything. Instead, your obligations usually come from a mix of consumer law, cosmetics/chemical product rules, advertising standards, privacy law (if you collect customer info), and sometimes extra rules depending on what your product is and what you claim it does.

For most small businesses, the big ones to be aware of are:

• Fair Trading Act 1986 (what you can and can’t claim in marketing, labels, and advertising)
• Consumer Guarantees Act 1993 (customers’ rights when products are faulty or not as described)
• Privacy Act 2020 (how you collect, store, and use customer personal information)
• Trade Marks Act 2002 (protecting your brand name/logo and avoiding conflicts with others)
• Health and Safety at Work Act 2015 (keeping your workspace safe, even if it’s home-based)
• Hazardous Substances and New Organisms Act 1996 (HSNO) and EPA requirements (many cosmetics are regulated as “hazardous substances” and must meet the relevant Cosmetic Products Group Standard, including packaging/labelling and ingredient-related controls)

On top of that, your “regulatory risk” can change depending on the claims you make. For example, if you position a product as treating a medical condition (rather than being a cosmetic), you may be pulled into a different regulatory category (including medicines regulation).

Cosmetic vs Therapeutic Claims (Why Your Wording Matters)

A common trap for small brands is accidentally making “therapeutic” claims when they mean “cosmetic” claims.

As a general guide:

• Cosmetic-style claims are about appearance and general wellbeing (e.g. “moisturises”, “helps skin feel smoother”, “gentle cleansing”).
• Therapeutic-style claims can sound like treatment or prevention of a condition (e.g. “treats eczema”, “heals psoriasis”, “cures acne”, “anti-inflammatory for dermatitis”).

If your marketing crosses into “treatment” territory, you may face extra requirements (and higher risk) under medicines/therapeutic product rules (including the Medicines Act 1981 and Medsafe expectations), compared with standard cosmetic products. It’s worth getting advice on your specific wording before you go all-in on labels and ads.

Product Safety, Ingredients, And Testing: How Do You Sell Safely?

When you’re selling skincare and beauty products, your customers are applying them to their skin - sometimes daily - so safety expectations are high (and rightly so). Even if you’re a very small business, you’re still responsible for ensuring your products are safe and fit for purpose.

There are a few practical “baseline” steps that help you show you’ve taken reasonable care:

1) Know Your Ingredients (And Your Suppliers)

Whether you’re sourcing essential oils, fragrance, preservatives, colourants, or base ingredients, keep clear records of:

• who you bought each ingredient from
• product specifications (including concentration and recommended use rates)
• safety data sheets (where relevant)
• batch numbers and delivery dates

This matters for quality control and also for traceability if something goes wrong and you need to investigate quickly.

It’s also important because some beauty/skincare products (or particular ingredients and concentrations) can trigger HSNO/EPA controls under the Cosmetic Products Group Standard - which can affect things like packaging, labelling, and hazard information.

2) Be Careful With Allergens And Irritants

You don’t need to turn your labels into a chemistry textbook, but you do need to think about foreseeable risks. Skincare allergies and sensitivities are common.

Practical steps include:

• choosing ingredients thoughtfully (particularly fragrances and essential oils)
• using safe concentrations
• including basic warnings where appropriate (e.g. patch test advice, external use only, avoid eyes)

If you’re unsure what you should include, it can help to review your overall labelling and packaging requirements and tailor them to skincare-specific risks (and any HSNO/EPA controls that apply to your formulation).

3) Batch Records And Recalls (Even If You’re Small)

If you’re making products in batches, you should keep batch records. This doesn’t have to be fancy - a spreadsheet can be enough - but it should let you answer questions like:

• What went into Batch 24-001?
• When was it made?
• How many units were sold, and where?

This becomes critical if a customer reports a reaction and you need to check whether it’s an isolated issue, a formulation problem, or contamination.

4) Don’t Forget Product Liability Risk

Skincare is one of those industries where complaints can quickly become serious (for example, burns, allergic reactions, or infections). Even if you’ve done everything right, you’ll want to think through your exposure and your “paper trail”.

From a legal risk perspective, it’s smart to understand how product liability can apply to businesses supplying consumer products - especially products used on the body.

Labelling And Advertising Rules: What You Can (And Can’t) Say

When you’re selling homemade beauty and skincare products, your label and product listing often do the heavy lifting. They’re not just marketing - they’re also a key legal risk area.

The Fair Trading Act 1986 is the big one here. In plain terms, you must not mislead customers (intentionally or unintentionally). That includes misleading statements, misleading impressions, and leaving out important information when silence would mislead.

Depending on your formulation, you may also have to meet HSNO/EPA labelling and packaging controls under the Cosmetic Products Group Standard (for example, hazard-related labelling if your product meets certain classifications, and requirements around packaging/closures in some cases).

Common Risk Areas For Homemade Skincare Brands

• “Natural” and “chemical-free” claims: These can be tricky because “chemical-free” is often inaccurate (water is a chemical), and “natural” can be vague unless you define what you mean.
• Before/after photos: If they create an unrealistic impression of typical results, you could be exposed to misleading advertising risk.
• “Hypoallergenic” or “dermatologist approved” claims: Only use these if you can back them up.
• SPF claims: Claiming sun protection is high-risk unless you have appropriate testing to support it (and you’re meeting any relevant standards and labelling expectations for sunscreen-type products).
• Therapeutic claims: As mentioned, claims like “treats eczema” can push you into a different regulatory category.

Practical Compliance Tips (Without Killing Your Marketing)

Instead of vague or absolute promises, aim for accurate, supportable descriptions. For example:

• Describe what the product is designed to do (e.g. “a rich moisturising balm”).
• Be clear about what it’s made from (e.g. “made with shea butter and jojoba oil”).
• Avoid guaranteeing results that vary from person to person.

Also remember: your “label” isn’t only the sticker on the jar. It includes your website, social media captions, product listings, and even things you say at a market stall. Advertising self-regulation (including ASA advertising codes) can also matter in practice, especially for before/after imagery and “scientific” style claims.

Consumer Law: Returns, Refunds, And Customer Complaints

Even if you’re a micro business, when you sell to consumers in New Zealand you generally need to comply with the Consumer Guarantees Act 1993 (CGA) and the Fair Trading Act 1986.

That means customers have automatic guarantees, such as that products will be:

• of acceptable quality
• fit for purpose
• matching their description

If a product doesn’t meet these guarantees, customers may be entitled to a remedy (like a refund, replacement, or repair) depending on the situation.

Can You Put “No Refunds” On Your Skincare Products?

Be very careful here. If you sell to consumers, a blanket “no refunds” policy can be misleading and can conflict with the CGA. You can still have a returns process, but it must not take away rights customers already have under the law.

If you sell online, having clear website terms can help reduce misunderstandings. Many businesses use Website Terms And Conditions to set expectations around shipping, delivery times, exchanges for change of mind, and how customers can contact you about issues.

Make Your Product Descriptions Match Reality

A lot of consumer disputes happen because the product received doesn’t match what the customer thought they were buying. Simple steps can make a big difference, including:

• clear sizing/volume (e.g. 50ml)
• photos that accurately reflect colour/texture
• clear directions for use
• clear storage instructions (especially if products are heat-sensitive)

Business Set-Up: Structure, Branding, And Selling Online

When you’re focused on product development, it’s tempting to treat the “business admin” part as something you’ll sort out later. But getting your foundations right early can save you major headaches - especially if your products take off and you start scaling quickly.

Choosing The Right Business Structure

Your structure affects tax, liability, and how you bring in business partners later. Common options include:

• Sole trader: Simple and low-cost, but you’re personally liable for business debts and claims.
• Company: More formal, but often provides better separation between you and the business (and can be helpful for growth).
• Partnership: Useful if you’re building with someone else, but you’ll want clear rules in writing.

If you’re weighing up whether to run as a sole trader or set up something more formal, it helps to read up on operating as a sole trader and compare that against your growth plans and risk profile.

If you decide a company structure is right for you, a proper Company Set Up helps you start with the right legal foundations from day one.

Protecting Your Brand Name And Product Names

Branding is everything in skincare - your business name, logo, product range names, and even signature phrases can become valuable business assets.

At minimum, you’ll want to do checks before you commit to a name. And if you’re building something with real momentum, you may want to consider trade mark protection. Many small businesses decide to Register Your Trade Mark to help protect the name they’re investing in.

Selling Online Means Handling Customer Data

If you sell through a website, social media, email orders, or an online marketplace, you’ll likely be collecting personal information such as names, email addresses, delivery addresses, and order history.

That means privacy compliance matters. You should think about:

• what data you collect (and why)
• where you store it (e.g. ecommerce platform, spreadsheets, email inbox)
• who can access it
• how customers can request access or correction

A clear Privacy Policy is a practical way to explain what you do with customer data and demonstrate you’ve taken privacy seriously.

Manufacturing From Home, Markets, And Wholesale: Extra Compliance To Consider

Selling homemade beauty and skincare products can look very different depending on your sales channels. A few extra compliance considerations often come up when businesses expand beyond “friends and family” sales.

If You Make Products At Home

If your “production space” is your kitchen or a home studio, you’ll want to be extra disciplined with hygiene, storage, and separation (for example, keeping ingredients away from pets, food areas, and household contamination risks).

Also consider your local council rules and landlord/body corporate restrictions if you’re running the business from a residential property. Even if no special permit applies, it’s worth checking early so you don’t get forced to stop trading right when you’re gaining traction.

If You Sell At Markets Or Pop-Ups

Markets are a great way to test products and build loyal customers fast. From a legal perspective, your biggest risks tend to be:

• making on-the-spot claims you can’t support (e.g. “this will fix your eczema”)
• not providing enough product information (directions, warnings, ingredients)
• payment disputes and refund misunderstandings

Have a simple written returns approach (that still respects consumer guarantees) and keep your labelling consistent across all products, even if it’s “handmade and small batch”.

If You Sell Wholesale To Retailers Or Salons

Once you supply to other businesses, your risks change. You’ll usually need to be clear about:

• minimum order quantities and lead times
• payment terms (including late fees)
• who wears the risk for damaged stock in transit
• how customer complaints will be handled
• whether the retailer can discount or bundle your products

This is where having properly drafted business terms becomes important, because you’re no longer dealing with one-off consumer sales - you’re building ongoing commercial relationships.

Key Takeaways

• When you sell homemade beauty and skincare products in New Zealand, you generally need to comply with consumer law (including the Fair Trading Act 1986 and Consumer Guarantees Act 1993) from day one - and many products also need to meet HSNO/EPA requirements under the Cosmetic Products Group Standard.
• Product safety is a core responsibility - keep ingredient records, batch records, and take a cautious approach to allergens and foreseeable skin reactions.
• Be careful with marketing and labels: avoid therapeutic or “too-good-to-be-true” claims unless you can properly support them, and make sure your product descriptions match reality.
• Online selling often means you’re collecting personal information, so privacy compliance matters and a clear Privacy Policy can help set expectations and reduce risk.
• As you grow into wholesale, pop-ups, or larger online volumes, getting your legal foundations right (business structure, brand protection, and well-drafted terms) becomes even more important.
• If you’re unsure where your claims sit (cosmetic vs therapeutic), whether HSNO/EPA controls apply to your formulation, or you’re scaling production and want to reduce risk, getting tailored legal advice early can save you expensive problems later.

If you’d like help setting up your legal foundations for selling homemade beauty and skincare products, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.