Medicines, Foods and Cosmetics

The classification of products can vary greatly between jurisdictions – the same product can easily be classed as medicine in one jurisdiction, a food in a second jurisdiction, and even a cosmetic in another.

Direct selling companies need to be certain their independent salespeople correctly understand the nature of the product they are selling – in places like Australia there are substantial fines for making therapeutic claims about a product that is not registered or listed on the Australian Register of Therapeutic Goods (ARTG).

Only certain claims can be made about food and cosmetics, and the nature of permitted claims again varies between jurisdictions. The discrepancies between jurisdictions increases the risk to direct selling companies where top distributors from say America, visit countries like Australia or New Zealand to teach about their marketing tactics or claims – just because they are legal in one jurisdiction, doesn’t make them legal in another.