{"id":219054,"date":"2022-11-29T11:59:30","date_gmt":"2022-11-28T22:59:30","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=219054"},"modified":"2022-11-29T11:59:31","modified_gmt":"2022-11-28T22:59:31","slug":"home-made-cosmetic","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/e-commerce\/home-made-cosmetic\/","title":{"rendered":"What Do I Need to Know About Selling Homemade Cosmetic Products Online in New Zealand?"},"content":{"rendered":"\n<p>Many people buy cosmetic products online. Buying beauty products online allows individuals to comprehensively research and compare products to make the perfect choice for them. If you are looking for a business venture, consider getting into the booming cosmetic industry by starting your own online cosmetics business. However, before you begin, you will need to understand the regulations for selling cosmetic products in New Zealand. This article will outline important information you need to start your homemade cosmetic business, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>creating a good business plan;<\/li>\n\n\n\n<li>having your taxes in order;<\/li>\n\n\n\n<li>ensuring that your advertising is legal;<\/li>\n\n\n\n<li>making your products safe; and<\/li>\n\n\n\n<li>complying with New Zealand consumer law.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Create a Good Business Plan<\/h2>\n\n\n\n<p>When starting your own business, the world is your oyster. However, this may mean you get ahead of yourself. You will need to take time to consider:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>what products you want to sell;<\/li>\n\n\n\n<li>how you are going to make those products in a safe and sanitary way;<\/li>\n\n\n\n<li>where you are going to sell these products &#8211; through an existing marketplace, social media platforms, or your own website;<\/li>\n\n\n\n<li>how you will market and advertise these products to your target audience; and<\/li>\n\n\n\n<li>how you will process payments.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Your choices will depend on how you want your business to operate and the brand identity you want to create. However, you should avoid taking on an overwhelming amount at the beginning. For example, if you market too many types of products, you may not be able to make them all safely at home. Consequently, if someone receives a faulty product, this may harm your brand overall, even if you offer a wide range of products.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Pay Your Taxes<\/h2>\n\n\n\n<p>If you are \u201cin trade\u201d in New Zealand, then you will need to pay income tax as an individual on the proceeds you make from your business. However, determining whether you are \u201cin trade\u201d can often be challenging. For example, if you are selling homemade <a href=\"https:\/\/legalvision.co.nz\/e-commerce\/selling-cosmetic-products-online\/\">cosmetic products online<\/a> in New Zealand regularly, you may be \u201cin trade\u201d. Additionally, if you are selling goods consistently through an online business to make a profit, you may be in trade.\u00a0<\/p>\n\n\n\n<p>If you feel that you are \u201cin trade\u201d, you will need to pay tax on your income from the business. You could even consider setting up a business as a sole trader, which could make your paying taxes more straightforward.&nbsp;<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    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The <em>Fair Trading Act<\/em> in New Zealand governs this law. This accounts for any business, not big or small. Any claims about your products should be able to be substantiated. You cannot market using false claims when you make and sell cosmetic products. This includes any statement, including ones that are made:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>verbally;&nbsp;<\/li>\n\n\n\n<li>in writing;&nbsp;<\/li>\n\n\n\n<li>visually, in pictures or advertisements; or<\/li>\n\n\n\n<li>through omission, by neglecting to mention important information.<\/li>\n<\/ul>\n\n\n\n<p>For example, this includes claims that these products eliminate wrinkles, eliminate all acne, or fix all scarring. Additionally, you should be careful not to make false claims about how much your product protects individuals from the sun, as this can become a serious legal issue.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Make Your Products Safe<\/h2>\n\n\n\n<p>A cosmetic product in New Zealand is defined as any product used to protect, cleanse or beautify the hair or skin. If you market your product as a cosmetic, you must comply with Medsafe&#8217;s cosmetic standards and <a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/therapeutic-product\/\">regulations<\/a>. You do not need to officially register or demonstrate your compliance with these requirements to a governing body. Instead, you must ensure that your cosmetic products are of acceptable quality and safe to use. If your product causes harm to an individual, you may be in breach of consumer law, as outlined below.\u00a0<\/p>\n\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/10\/21140438\/NZ-Startup-Manual-251x360-2.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">NZ Startup Manual: A Legal Handbook For Founders<\/div>\n            <div class=\"body-text\">\n                <p>Essential reading for anyone building their startup. This free guide includes practical advice and seven real-life case studies.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/NZ-Startup-Manual.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Ensure You Comply With Consumer Law<\/h2>\n\n\n\n<p>You will also need to comply with the <em>Consumer Guarantees Act<\/em>. You must ensure that your goods are of acceptable quality and are fit for purpose. You also need to ensure that you can repair, replace or refund any cosmetic product you sell if the goods are substandard. Make sure that you have good processes in place if you have to give a customer a refund or replace a product.&nbsp;<\/p>\n\n\n\n<p>Finally, make your products as safe as possible. If they cause injuries to individuals, you may face severe consumer law penalties for creating faulty and dangerous products.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>Creating an online business that sells products you make at home can be a challenging but rewarding venture. However, you must ensure you obey New Zealand consumer, tax, and business laws.&nbsp;<\/p>\n\n\n\n<p>If you need help with setting up an online business, our experienced <a href=\"https:\/\/legalvision.co.nz\/online-business-ecommerce-lawyers-lp\">eCommerce lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our <a href=\"https:\/\/legalvision.co.nz\/membership\/\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1669674548957\"><strong class=\"schema-faq-question\"><strong>What regulations do I need to obey when I make homemade cosmetic products?<\/strong><\/strong> <p class=\"schema-faq-answer\">You must ensure you comply with all cosmetic production standards, including those set by MedSafe. However, it is up to you to ensure that you abide by these standards. There is no governing body that will test these products.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1669674569389\"><strong class=\"schema-faq-question\"><strong>If I am selling products frequently online, am I in trade?<\/strong><\/strong> <p class=\"schema-faq-answer\">Most likely, yes. Knowing whether or not you are in trade can be challenging, but the general question is the frequency you are trading. If you sell products often, you are likely \u201cin trade\u201d.\u00a0<\/p> <\/div> <\/div>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"29d45c3efd\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/219054\" \/>            <input value=\"https:\/\/legalvision.co.nz\/e-commerce\/home-made-cosmetic\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What Do I Need to Know About Selling Homemade Cosmetic Products Online in New Zealand?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Many people buy cosmetic products online. Buying beauty products online allows individuals to comprehensively research and compare products to make the perfect choice for them. If you are looking for a business venture, consider getting into the booming cosmetic industry by starting your own online cosmetics business. However, before you begin, you will need to<a href=\"https:\/\/legalvision.co.nz\/e-commerce\/home-made-cosmetic\/\">Continue reading <span class=\"sr-only\">&#8220;What Do I Need to Know About Selling Homemade Cosmetic Products Online in New Zealand?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13318,"featured_media":215584,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"205074,213069,202577,203489,1306,202157","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[6],"tags":[25,54,1295,1596],"class_list":["post-219054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-commerce","tag-small-business","tag-medium-business","tag-beauty-salon","tag-health-and-fitness"],"acf":[],"yoast_head":"<!-- This site is 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