Two manufacturers of polyester insulation batts have accepted that they may have overstated the rating of some of their products, following an Australian Competition and Consumer Commission investigation.

The ACCC believes that Auspoly Pty Ltd (Auspoly) and Autex Pty Ltd (Autex) had overstated the R Value* of certain polyester insulation batts on the packaging. The affected batts represented by Auspoly to have an R Value of 3.5 and by Autex to have an R Value of 3.0 were only part of Auspoly's and Autex's product range.

Inquiries by the ACCC, in conjunction with the Australian Greenhouse Office** indicated the actual R Value of the Auspoly and Autex batts affected was less than that represented.  Testing conducted to Australian and New Zealand Standard 4859.1 Materials for the thermal insulation of buildings disclosed a lower rating than that stated on the packaging.

The companies have provided 87B undertakings which require them to ensure for three years that the representations made concerning the R Value of their polyester insulation batts are derived from testing the batts in accordance with the Standard.

The undertaking also requires that both companies implement a corporate trade practices compliance program. 

From May 2005, the Building Code of Australia will require that insulation materials used in new building construction will comply with the performance requirements of the Australian New Zealand Standard 4859.1. The new standard which replaces ASTM C 653 and ASTM C 518 provides for products to be tested in their retail form as opposed to straight off the production line. In the retail form products are compressed by packaging and storage.

"Federal and State Governments have recognised the importance of initiatives to achieve energy efficient measures", ACCC Chairman, Mr Graeme Samuel, said today. "Insulation is one measure that is critical in this process. It is essential that consumers can purchase insulation products with confidence. 
 
"The insulation industry is on notice. It has a Standard that must be followed. If the ACCC finds suppliers of insulation products misrepresenting insulation values, then those suppliers can expect action. 

"In these circumstances the institution of legal action would be a likely enforcement option.  Suppliers who misrepresent insulation ratings now do so at their peril. Insulation produces ongoing savings for consumers for the life of the product and also environmental benefits".