An upgraded court-enforceable undertaking by insulation batt manufacturer Auspoly Pty Ltd has been accepted by the Australian Competition and Consumer Commission.
The ACCC had continuing concerns about the insulation rating (R value) of a range of Auspoly polyester insulation batts which were lower than the R value stated on the batt packaging.
Auspoly offered the ACCC an original undertaking in May 2005 after concerns were raised about a stated R Value that was higher than that indicated when tested against the relevant industry standard, Australian/New Zealand Standard 4859.1.
The ACCC was concerned that Auspoly's representations were likely to have breached the Trade Practices Act 1974.
The original undertaking required that all claims Auspoly made regarding the R value of its polyester batts were to be derived from, and consistent with, testing and procedures compliant with the standard.
From December 2006 to February 2007 Auspoly produced a number of batts where the stated R value was higher than the tested R value. To redress the reoccurrence of the problem, Auspoly has undertaken to install a new and fully automated polyester batt production plant that includes automatic weighing and computerised labelling of its batts.
The enhanced undertaking also provides for Auspoly to compensate consumers who bought the affected batts and to publish an educative article about the Trade Practices Act in a major industry publication. Auspoly will contact affected consumers with the cooperation of its wholesale customers.
"Insulation is an integral, costly component of housing construction today and has an important function in reducing greenhouse gas emissions," ACCC Chairman, Mr Graeme Samuel, said today. "Consumers are entitled to believe suppliers' claims and to get what they are paying for."
"I am pleased that Auspoly has undertaken to compensate consumers who purchased deficient batts as part of this resolution," Mr Samuel said.
