An Auckland company has been fined $540,000 for making false and misleading claims about the quality of its steel reinforcing mesh.
The Commerce Commission charged Brilliance International Limited with 20 breaches of the Fair Trading Act after it claimed its steel mesh was earthquake grade.
Brilliance claimed on its website and on product tags that its 147E mesh complied with the Australian and New Zealand standard for reinforcing steel suitable for structural use in an earthquake zone, when it did not.
The company also claimed its mesh had been tested buy independent laboratory SGS New Zealand, when it had not.
The charges relate to approximately 56,125 sheets of steel mesh.
Commerce Commission Chairman Mark Berry said the safety and durability of New Zealand's buildings depended on them being constructed with materials that complied with the relevant standards.
"False and misleading representations about building products are a priority for the Commission because compliance with standards is critical to both public confidence and safety," he said.
Brilliance had pleaded guilty to the charges and in his judgment Auckland District Court Judge Robert Ronayne said the company's conduct undermined the NZ Building Code and the objectives of Standards in general.
According to Companies Office records Brilliance International Ltd is 100% owned by GW Group Limited and Guanghui Wu of Auckland is listed as the sole director of both companies.
The addresses of both Brilliance International and Wu are listed as 18-20 Allens Road, East Tamaki, Auckland.
You can receive all of our property articles automatically by subscribing to our free email Property Newsletter. This will deliver all of our property-related articles, including auction results and interest rate updates, directly to your in-box 3-5 times a week. We don't share your details with third parties and you can unsubscribe at any time. To subscribe just click on this link, scroll down to "Property email newsletter" and enter your email address.
12 Comments
What a surprise, the dodgy steel came from China. They shouldn't be allowed to import this rubbish until it has been certified to standard. I would also suggest ongoing batch checks, as it is usual to supply superior product for testing and then revert to the cheap rubbish grade once tests are completed. What are the ramifications for buildings constructed with this Tofu Steel?
Where was the faulty mesh used? Are citizens at risk if it was used in public infrastructure...eg bridges? If used for private dwellings, what are the insurance ramifications? Is this a get-out-of jail card for insurers in the event of damage in an earthquake? Would Brilliant be liable in any resultant claims dispute...of course, using lawyers to pursue that would be beyond the hapless house owner to afford....
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.