First sentence handed down over steel-mesh claims
Timber King and NZ Steel Distributor have been fined $400,950 for making false and misleading representations about their steel mesh products used to strengthen buildings.
Both companies pleaded guilty to making false, misleading and unsubstantiated representations relating to their TS10 steel mesh between June 2015 and February 2016. The two are related, with NZ Steel Distributor importing steel from China and Timber King selling it to customers.
In the Auckland District Court, Judge Robert Ronayne found the steps taken by the companies to ensure the mesh complied with the New Zealand standard were ‘‘grossly negligent’’.
‘‘It is quite obvious in New Zealand, given our history of earthquakes and the consequences of them, that there is a vital need for consumers to rely on representations as to standard compliance and, in particular, earthquake standard compliance.’’
Timber King has been fined on five charges under the Fair Trading Act and NZ Steel Distributor has been fined on two.
The offending involved representations made on batch tags, invoices and receipts, and on a forged test certificate which claimed the steel had been independently tested, complied with the Australia/New Zealand standard for reinforcing steel, and was suitable for structural use in an earthquake zone.
‘‘The creation of the fake certificate can only have been deliberately carried out in order to provide an additional false assurance of compliance with the standard,’’ the judge said.
‘‘The use of non-compliant steel mesh, especially in the context of earthquake-compliant mesh, has actual and potentially enormous consequences for consumers, for competitors and for the reputation of the building industry. Very strong specific and general deterrence is required in these circumstances.’’
The Commerce Commission has investigated several companies selling steel mesh after a complaint in August 2015, including:
❚ Fletcher Steel (issued with a warning).
❚ United Steel and Pacific Steel (NZ) (issued with compliance advice).
❚ Brilliance Steel (pleaded guilty to
20 charges and will be sentenced in May).
❚ Steel and Tube Holdings (pleaded guilty to 24 charges and awaiting sentencing).
❚ Euro Corp (facing 59 charges).