If a product contains mushroom extracts in the form of liquid or powder, it may fall under the category of therapeutic goods and come under TGA regulations. This is especially true if the product is supplied in capsule or tablet form, contains concentrated or isolated compounds intended for therapeutic use, uses processing methods consistent with therapeutic goods, is used in traditional medicine, or makes therapeutic claims on the product label or in advertising.
For instance, if the product is referred to as "medicinal," "traditional medicine," or a "tincture," or if it is intended for the treatment or prevention of disease and comes with dosage information, it will likely be regulated as a therapeutic good.
The Code requires that all advertising for therapeutic goods must be truthful, balanced, and not misleading. Advertising must not make claims that are not supported by evidence, or that exaggerate the benefits of the product. Claims must be backed up by reliable scientific evidence.
If mushroom products are marketed as therapeutic goods, such as supplements or medicines, then they would be subject to the advertising regulations set out in the Code. If they are marketed as foods or dietary supplements, they would be subject to food regulations and guidelines instead.