Sunscreen scandal as products fail to meet SPF claims

In August 2025, independent testing by consumer advocacy group CHOICE revealed that in Australia, 16 out of 20 popular sunscreens failed to meet their advertised SPF. The scandal continues to grow, with further products pulled from shelves over safety concerns.

Australia is a hotspot for skin cancer. It is estimated that two out of three people have at least one cut out in their lifetime.

A number of sunscreen brands share the same problematic base formula, and significant concerns have been identified with:

• the manufacture of some sunscreens; and
• integrity of laboratory testing relied upon to prove their SPF claims. 

There are also concerns regarding conflicts of interest in testing, with one testing lab being owned by a company which manufactures zinc oxide (an ingredient which can be used in sunscreen). 

The failures have occurred across the SPF spectrum and some of Australia’s most trusted brands have received test results well below their claimed SPF level.  

Experts have warned that the scandal may have global industry-wide implications. Products that share the same base formula as products returning poor results have been sold overseas. Testing laboratory concerns may also affect products certified in other markets.

What does this mean for insurers?

Product liability: Companies that produced sunscreens failing to meet SPF claims face potential liability for:

• Personal injury claims from consumers who suffered sunburn or skin damage.
• Future skin cancer diagnoses; potentially attributable to inadequate sun protection. 
• Class action lawsuits representing thousands of affected consumers. 
• Regulatory penalties and fines.

In addition, costs may be incurred in recalling products, providing product refunds, or in responding to reputational issues. 

Facilities that provided inaccurate SPF testing may face:

• Professional negligence claims.
• Loss of accreditation and business.
• Liability for downstream harm caused by their faulty testing.

There is also a risk of regulatory contagion, other jurisdictions launching their own investigations into sunscreen efficacy and/or other products which make safety claims. There may also be a global move away from reliance on manufacturer-submitted testing, which the Australian situation has shown to be flawed. 

Insurers in this sector may want to consider underwriting and policy wordings in response to these ongoing developments.