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.
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