Boss fined over bogus panels
A Dunedin businessman has been fined $85,000 for misrepresenting China-sourced concrete panels.
Cavan Forde was sentenced in the Dunedin District Court yesterday morning, after last month pleading guilty to three charges under the Fair Trading Act.
Those representative charges relate to Forde importing autoclaved aerated concrete (AAC) which is used as a nonstructural exterior cladding for buildings. His company, Cavan Forde Group, imported, manufactured and sold around New Zealand
AAC and related building products.
The company used to supply Australian made Hebel branded AAC products in New Zealand, but after that agreement ended he continued to give the impression the products were still Hebel.
Commissioner Anna Rawlings, of the Commerce Commission, said as well as supplying the product as Hebel when they were manufactured in China, he published design guides giving the impression engineering firm Opus endorsed the AAC cladding system, when it had not. ‘‘Consumers are entitled to rely upon the accuracy of product information and specifications provided to them when making buying decisions,’’ Rawlings said.
‘‘The representations made by Mr Forde’s companies were particularly concerning given some consumers preferred to use the Hebel brand rather than Chinese manufactured materials.
‘‘This also may have given him an advantage over his competitors who were also selling Chinese product.’’
Judge Michael Crosbie said builders and consumers must have confidence in what they use and buy.
‘‘The representations overall can only be viewed as an attempt to convey the company’s products in the best possible light, even if that meant incorrectly conveying the country of origin and an endorsement by Opus.’’
Forde’s case was part of the Commerce Commission’s prosecution of four men who held ownership or management positions with the former Cavan Forde Group (CFG).
Darryl Campbell, former owner and director of nowdefunct Christchurch Lightweight Concrete Limited, was fined $151,875 in October 2017.
Christopher Middleditch, the former director of Supercrete Auckland Limited, was fined $37,500 in February.