$18,000 fine for false claim over insulation quality (Golden Bay Properties Pty Ltd / Jumbuck Wool Insulation)
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A roof insulation company has been fined $18,000 by the Albany Magistrates Court for misleading consumers about the quality rating and standard of one of their products.
Golden Bay Properties Pty Ltd, trading as Jumbuck Wool Insulation, was also ordered to pay costs totalling $11,968 when sentenced on 6 April 2017.
In September 2014, an officer from Consumer Protection purchased polyester insulation material from the business with the label claiming the product had an R-value rating of 3.0 which complied with Australian standards. The R-value rates the level of thermal resistance of the insulation.
The product was tested by the Australian Wool Testing Authority which showed that it failed to meet the standard indicated on its label and had less than the declared thermal resistance.
The Court accepted that the offence under the Australian Consumer Law was unintentional and the company had since reviewed its production processes to remedy the problem.
Acting Commissioner for Consumer Protection David Hillyard said it was the obligation of every business to ensure that labels on their products are accurate.
“Consumers make purchasing decisions based on the information contained on labels, packaging and in advertising of products, so it’s imperative that the information is correct,” Mr Hillyard said.
“In this case, consumers purchasing the insulation would expect it to have the insulating capacity claimed. The long term heating and cooling costs would have been greater for the purchaser.
“Whether intentional or not, if consumers are misled by false information about a product it is a serious offence and may result in financial penalties as in this case, as well as damage to the reputation of the business.”
Information about truth in advertising is available on the Consumer Protection website www.commerce.wa.gov.au/cp. Consumers who believe they have been misled by false statements or information should contact Consumer Protection by email email@example.com or call 1300 30 40 54.
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