The Australian Competition and Consumer Commission has instituted legal proceedings in the Federal Court of Australia against Autex Pty Ltd about alleged misleading thermal resistance labelling of certain Greenstuf brand packaged polyester insulation batts in the period from May 2005 until August 2006.

The proceedings also concern the alleged failure of Autex Pty Ltd to comply with undertakings given to the ACCC in March 2005*.

The ACCC principally alleges Autex Pty Ltd engaged in the offending conduct in contravention of the Trade Practices Act 1974 by misleading retail customers of these insulation batts in relation to the batts' thermal resistance rating or "R Value"**. The ACCC claims such customers may have been led to believe the 'Total' R Value rating referred to on the batts labelling was a "Material" R Value.

It also alleges the company misled retail customers by representing that these batts were labelled in accordance with AS/NZS 4859.1: Australian/New Zealand Standard: materials for the thermal insulation of buildings when this was not the case.

Additionally, the ACCC has alleged that Autex Pty Ltd has engaged in misleading conduct in relation to the labelling of its polyester insulation batts with a "Total R 3.2"and "Total R 3.8" thermal rating. The ACCC alleges that these batts could not achieve the represented thermal resistance even if the batts were installed in accordance with the provisions of the Building Code of Australia.

The ACCC is seeking declarations, injunctions, findings of fact, a publication order and costs.

The matter is set down for hearing before Justice Sundberg at 10:15 am on Friday 27 April 2007 in Melbourne.