Australia's sunscreen regulator has proposed sweeping reforms to the industry after a recent scandal saw dozens of popular brands pulled off shelves.

An experiment by a trusted consumer advocacy group last year found many Australian sunscreens were not providing the protection they claimed to, sparking public outrage in a country which is a skin cancer hotspot.

An investigation by the Australian Broadcasting Corporation also alleged issues with a leading laboratory which test sunscreen efficacy and a manufacturer which made a common base formula.

The Therapeutic Goods Administration (TGA) has now announced plans to make sunscreen labelling simpler and introduce more oversight at testing labs.

"Proposals to improve and expand testing requirements, require accreditation for testing laboratories, and increase transparency will help restore consumer trust in the reliability of SPF claims," said Andy Kelly from Choice, the group which authored the report at the centre of the saga.