Legal action threat over carpet claims

Wool carpet manufacturer Cavalier has been accused of ‘‘demonising’’ synthetic carpets by its rival Godfrey Hirst, which is threatening legal action under the Fair Trading Act.

NZX-listed Cavalier announced in July last year that it was exiting the synthetic carpet market to focus on natural fibres as it eyes increased demand for more sustainable products. Its last synthetic carpet rolled off the production line in May.

Sales of wool carpet which were once dominant in New Zealand have fallen to about 15 per cent of the market amid competition from cheaper synthetic carpet. While Cavalier now only sells wool carpet, its larger rival Godfrey Hirst sells both wool and synthetic carpets.

Godfrey Hirst, owned by the New York Stock Exchange-listed firm Mohawk Industries, complained through lawyers Chapman Tripp that since announcing the change to an ‘‘all wool and natural fibres strategy’’, Cavalier has been demonising synthetic carpets with false and misleading references to single-use plastic bags and microplastics.

Cavalier has likened a household of synthetic carpet to the equivalent of 22,000 single-use plastic bags, which Godfrey Hirst alleged was false and misleading.

Godfrey Hirst accused Cavalier of lauding the environmental benefits of wool carpets without acknowledging the full environmental impacts of wool carpet manufacturing, including livestock farming, wool scouring, chemicals use and synthetic backing.

Chapman Tripp said Godfrey Hirst and other suppliers of synthetic carpet to the New Zealand market were being harmed by Cavalier’s conduct. Consumers, retailers and potential Cavalier investors were being misled, deceived and substantially harmed, the firm said.

Through its lawyers, Godfrey Hirst threatened to take proceedings against Cavalier for breaching the Fair Trading Act if its rival failed to correct what it saw as misleading material. Chapman Tripp gave Cavalier a week from its July 16 letter to remedy the statements. A spokesman confirmed no legal action has been taken.

In response, Cavalier’s lawyers Russell McVeagh said the carpet maker was confident its publications complied with all laws, including the Fair Trading Act. The lawyers noted Godfrey Hirst had not provided specific examples of the disputed claims which limited Cavalier’s ability to respond.

Russell McVeagh said the ‘‘100 per cent New Zealand wool’’ claim was factually accurate, could be substantiated, and a reasonable consumer would be aware the wool must be treated with some form of chemicals.

The law firm countered that some of Godfrey Hirst’s claims on its website could not be substantiated.

‘‘We see this legal threat as a distraction and an attempt to stifle legitimate competition and consumer choice,’’ said Cavalier chief executive Greg Smith.