by Steel manufacturer Euro Corporation has been fined $361,000 for making false or misleading and unsubstantiated representations about products marketed as earthquake-grade.
Euro pleaded guilty in the Auckland District Court to making false or misleading and unsubstantiated representations of products sold as being earthquake-grade steel mesh between January 2012 and August 2015.
Euro is the final company to be sentenced as a result of a series of investigations into steel mesh the Commission carried out in 2015 and 2016.
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Other companies fined include Steel and Tube Ltd, who copped the largest fine of $1.5 million, as well as Brilliance Steel Limited, Timber King Limited and NZ Steel Distributor Limited.
All together the companies were fined just under $3m.
The fines were related to steel mesh used in earthquake strengthening buildings. In the steel industry earthquake-grade mesh is known as 500E.
But the companies marketed and sold locally produced and imported steel mesh as 500E, despite having no means to prove it met the standard.
Commission chair Anna Rawlings said that as consumers could not verify industry performance standards, it was critical that companies accurately and honestly described materials to consumers.
Auckland District Court Judge Sharp sentenced Euro on 14 charges brought by the Commerce Commission under the Fair Trading Act.
Commerce Commission chair Anna Rawlings said building standards are in place to give the public confidence that their cities are safe.
Sharp said, because the standards were designed to make buildings safe, a deterrent response was appropriate in this case.
Euro Corporation Chief Executive David Deavoll said the charges included no allegation that the steel mesh did not meet physical performance requirements.
Deavoll also noted Judge Sharps decision concluded that the conduct was careless rather than deliberate.
We made changes to our product assurance system five years ago to ensure that we can demonstrate continuous compliance.
