ACCC institutes against Townsville company

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Brisbane against Goldseal Australia Pty Ltd, Specialty Products International Pty Ltd and Mr Norman English, a director of both companies, alleging misleading representations.

The respondents have sold franchises and distributor agreements in northern Queensland since 1997. At the heart of the agreements is a waterproofing membrane identified by numerous names but generally known as "Polyshield SS-100". It is used in many industries such as building, construction and mining.

It is alleged that three franchise/distributor agreements have been negotiated to a value of more than $200 000. The ACCC alleges that in the course of selling the franchises and distributorships it was represented that the companies:

• developed the waterproofing membrane;
• held intellectual property rights for the product;
• had affiliations with the:
• Housing Industry Association;
• Waterproofing Industry Council of Australia;
• Queensland Master Builders Association; and
• had an independent assessment of quality management by Standards Australia,
  where they did not.
  
  

The ACCC alleges that these were false representations and in breach of sections 52 and 53 of the Trade Practices Act 1974.

The ACCC is seeking injunctions, declarations, findings of fact, orders for a compliance program and public disclosures as to the conduct.

A directions hearing has been set down for 25 June 1999.