A dispensing closure and label system provides a clear indication of prior opening directly at the point of application of force to open the closure. The dispensing closure includes a closure body, a living hinge and a lid. The lid includes a downwardly depending sidewall that has a thumb tab that extends down beyond the parting line of the lid and the closure body. A label wraps around the skirt and container neck. The label overlaps that portion of the thumb tab that extends below the parting line of the lid and body. When the thumb tub is lifted to open the container, the paper label is ripped in the area of the thumb tab to evidence opening.