Two companies, one of which is a building certification company in Australia, have been fined for making false claims about a building wrap product.
The Commerce Commission has fined Masons Plastabrick Limited $240,000 and CertMark International Pty Limited (CertMark) $210,000 for the breach.
Photo: RNZ / Alexander Robertson
The commission said Masons' building wrap product, marketed as FR1 or Barricade Plus, was advertised as suitable as an air barrier, and compliant with the air resistance standard, when it was not.
CertMark was charged with issuing a CodeMark certification in 2015 saying the product was suitable as an air barrier when it was not.
Building wrap is typically fixed between the framing and cladding of buildings to provide a barrier against moisture entering a building.
This is the first time the Commerce Commission has taken action against a certifier under the CodeMark scheme, which is governed by the Building Act 2004 and Building (Product Certification) Regulations 2008.
Masons pleaded guilty to six charges, and CertMark pleaded guilty to one charge relating to an assessment brief it produced and published.
Commission chair Anna Rawlings said false representations about building products were a priority area for the commission because of the serious harm they could cause homeowners.
"Suppliers and manufacturers must only make claims about their building products that are accurate. Builders and homeowners must be able to confidently rely on what they are told by suppliers and manufacturers of building products as well as proper certification under the CodeMark scheme.
"Certifiers like CertMark play a vital role in the building compliance system and have a responsibility to verify the accuracy of product claims relevant to their work."
Masons has agreed to rectify any installed product that may be affected.
In July 2019 CertMark was suspended from acting as a product certification body by JAS-ANZ for failing to meet its accreditation requirements. CertMark subsequently withdrew from the CodeMark Scheme. CertMark continues to undertake CodeMark certification in Australia and provides proprietary building product certificates in New Zealand.
In a statement, Masons said after it found out a Certmark Code Mark certification it had relied on was incorrect it took steps to remove labelling, specifications and a chart containing the information, notified relevant retailers and builder merchants it had supplied and issued a recall letter.
The company said it had taken responsibility for representation errors, pleaded guilty to charges brought by the Commerce Commission, and remediated affected houses at its cost. It has established a compliance team and was having promotional and advertising material independently reviewed, the statement said.