Calair Systems gives undertakings over industrial piping systems
The Australian Competition and Consumer Commission has accepted court-enforceable undertakings from Calair Systems Pty Ltd over alleged misleading claims about the quality and performance characteristics of its polypropylene pipe products.
Calair Systems markets and sells a polypropylene pipe system known as 'Pro-Pipe II' which is designed for use in industrial applications to pipe air, water, gas, chemicals, oil and waste and for the provision of fire sprinkler services. The Pro-Pipe II system is available from distributors located in New South Wales, Victoria, South Australia and Tasmania.
Calair Systems published a brochure promoting the Pro-Pipe II system, made available to customers through distributors of Pro-Pipe II and on its website at www.calair.net.au. The brochure was available from approximately September 2001 to September 2004.
After conducting an investigation into Calair's claims in the brochure, the ACCC identified the following concerns:
Calair stated that the Pro-Pipe II System "a wide operating temperature of -20°C to +100°C", whereas the system cannot be operated in the temperature range of -20°C to +10°C without an effect on the impact strength and resistance of the system
Calair offered customers a 10 Year Guarantee on the Pro-Pipe II System, whereas a variety of applications to which the system might be put would result in a design life for the system of less than 10 years
Calair stated that Pro-Pipe II could be used in the provision of fire sprinkler services, whereas Calair had not obtained certification under Australian Standard AS 4118.2.1 verifying the suitability of the system for fire sprinkler systems, and
Calair stated that "all components of the system had been thoroughly tested and proven to sustain the integrity of the system", whereas extensive testing had not been carried out
Calair stated that the system is "UV Stable" and "will not peel, de-laminate or crack, even when exposed to UV light", whereas all polypropylene products (the substance with which the system is made) will degrade over time when exposed to UV light, and
Calair stated that the system complies with International Standard ISO R508; whereas this Standard was superseded in 1986.
The ACCC believes these representations contravened sections 52, 53(a) and 53(c) of the Trade Practices Act 1974 which prohibit false and misleading conduct.
Calair has acknowledged that the representations may have been in breach of sections 52 and 53 of the Act and provided a court enforceable undertaking that it will:
not make any representation that the Pro-Pipe II System is of a particular standard or quality and/or has any other performance characteristics if the system is not of that standard or quality and/or does not have those performance characteristics
send a corrective letter explaining the ACCC's concerns to licensed distributors of the Pro-Pipe II System
send a corrective letter explaining the ACCC's concerns to all persons who were supplied with a Pro-Pipe II System in the past three years, and
require its sole director to attend trade practices law compliance training and maintain a trade practices compliance folder.
"Suppliers of products, particularly suppliers of products used to enhance the safety of workplaces, must be very careful to ensure that any claims they make about the standard, quality or performance characteristics of their products are entirely accurate as customers will be relying on such claims to make their purchasing decisions", ACCC Chairman, Mr Graeme Samuel, said today.
"In addition, suppliers must not claim or imply to customers that their products have any approvals or other accreditation, such as Australian Standards, or have been independently tested when this is not in fact accurate".
