Australian soap laws?

[bubblybliss]

Hi guys, I have recently been planning to sell my CP soap, but I am worried about the legal side of things (I don't want to get sued).
I was hoping that someone may be able to point me in the right direction with this? Any help would be much appreciated.

 

[aussie girl]

Hello Bubblybliss.
I spent quite some time trying to find out this exact information.
Go to: http://www.j-web.com.au/jpage/business/legal-guidelines-for-labelling-packaging-soap-cosmetics.aspx
I hope this helps...

 

[bubblybliss]

You are a lifesaver Aussie girl. I don't know how you found this but it is exactly what I was looking for.

 

[Cuckoo Bananas]

NICNAS is a killer. I joined it one year to have a go and see how it worked out selling them. I just ended up feeling pressured to make the money back and to break even, it killed the fun in soap making so for me when the next year rolled around I didn't rejoin and I don't sell it anymore. I guess it depends how much time and money you have though and what your goal is.

 

[Bubbles Galore]

NiCNAS - the thing I object to, is that you really get nothing for your money and the consumer doesn't benefit because they don't regulate what you do as a soap maker, not that I want them to, but anyone can just pay their $400 and make and sell soap. Whether it is safe or not is another question.

Nicnas were looking at introducing another tier of fees for hobby soap makers and that should have gone through this year but I think revenue raising (they are self funded) has got the better of them and I don't expect to see any reduction in fees. :evil:

 

[SoapDish]

Thanks for the information! I am a loooooong way off even considering selling, but it's good information to have.

 

[bubblybliss]

Nicnas sounds pretty evil, how do they get away with charging so much and making it a law to pay!
I wonder if I could get away with not paying them and still selling soap. Has anybody tried this before?

 

[Bubbles Galore]

The fine is quite horrendous so I wouldn't recommend it. Not that they are out checking, but is it worth the risk?

 

[Cuckoo Bananas]

Selling to your family and friends would be OK but I wouldn't go putting them in any stores or at markets. NICNAS don't go around checking so I imagine any fine would really only come from another soaper or person being vindictive. There is a registration lookup thing to see who is registered just like with ABN lookup so it would be easy to find out if you've paid the fees or not. I'm sure there are soapers out there who don't pay it but yeah - it would sting hugely if you got fined. On the good side though the registration fee covers manufacturing the soap so even after your registration expires you can continue to sell whatever you had made during that registered time.

 

[Bubbles Galore]

The thing is that you're not allowed to be a hobby, as NiCNas requires ABN so you have to register a business name. Taxation Dept on the other hand, allows you to make and sell goods as a hobby without registering a business as long as you're not making more than $6000. The two clash. Insurance is far more expensive than Nicnas registration.

 

[SoapDish]

So, am I to understand that NICNAS does not include insurance? I was under the impression (and forgive my ignorance as I am very new to soap making) that by registering with NICNAS was a way of ensuring that if a customer was somehow effected by your soap (by means of allergic reaction, etc) that they were your back up?

Is NICNAS basically a registration so THEY can acknowledge that you don't have dangerous substances in your soaps, then you have to worry about insurance on your own, PLUS register for an ABN? (I'm guessing that to register for NICNAS, you also have to have a registered business).

 

[Cuckoo Bananas]

You can be a sole trader without a business name and just do it under your own name.

There is no insurance with NICNAS that is something optional that you can get yourself if you want, you don't need to be insured. Personally I think there is a bit of overkill on insurance. I didn't have insurance when I sold mine - I was confident in my soaps though and tested each batch before I sold anything and made sure I labelled it all really well so anyone with allergies could look out for it. But I was just a small fry - If I had a bigger soaping operation I would probably have taken out some sort of product insurance.

To sell at some markets though you need public liability insurance which doesn't cover what you sell but the space you occupy at the market so that if someone twists their ankle at the front of your stall then your insurance covers it and the markets don't need to pay for insurance. Each place will be different though.

You could also look at making some sort of disclaimer at your point of sale saying that people should use common sense when using your product and take care to not slip in the shower and to test a small patch on their skin before use and that you are not responsible once the product has been sold etc etc.

 

[SoapDish]

Thanks Cuckoo Bananas!

 

[Pretty n Plain]

I'm sorry to be the bear of bad tidings but it seems NICNAS have been doing the rounds in SE QLD checking license/label requirements.
I'm going to keep this short or else i'll start ranting and raving...I have nothing good AT ALL to say about NICNAS so I better behave myself :roll:

 

[Bubbles Galore]

I just got an email update from Nicnas ... busy little people that they are. They probably read this forum. There are only 8 of them and they have lots to do. Still no word on our fees being reduced. Go to their website to read what they're up to.

In this issue:

CEF meets in Canberra

COAG Standing Committee on Chemicals

Lead in Children's Playgrounds

Ethylene Propylene Diene Monomer (M-class) rubber

Coal Seam Gas chemicals

NICNAS's 2010 Stakeholder Survey

Chemical Safety Updates

National Asbestos Management Review

NICNAS Cost Recovery Impact Statement – CRIS

Changes to the NICNAS Act

NICNAS and the ECHA

Who filled out the on-line survey that they conducted? It was so long ago that I can't remember what was in it but I know that I did it even though I don't sell.

 

[confused]

Nicas

What I find confusing, is the fact soap makers must register with NICAS if the soap is to be sold. Then to discriminate against soap makers, NICAS allows free soap, As there is no need to register, if the soap is being given away for free, or it is a not for profit organization, selling soap to raise money for charity.
One way to overcome this problem, would be to establish a club just like the movie "Dallas Buyers Club", where people pay a membership to receive free soap!
With all the red tape, and hoop jumping, no wonder manufacturing in Australia is decreasing, and moving overseas.

It is a shame our Governments do not support the small manufacturers in Australia.

 

[Susie]

This thread is 3 years old.

 

[The Efficacious Gentleman]

Aye. I am rather confused, too.