Home insulation must meet claim on label

Home insulation must meet claim on label, warns Commission

The manufacturers of Pink Batts and GreenStuf insulation products have been warned that they may have breached the Fair Trading Act because their insulation failed to meet the quality level claimed on packaging.

Both companies moved immediately to correct the misrepresentations and ensure future claims are accurate.

Tasman Insulation New Zealand Limited, manufacturer of Pink Batts, and Autex Industries New Zealand Limited, manufacturer of GreenStuf, have been formally warned by the Commission after it found products tested did not meet the 'R' value claimed on packaging.

The 'R' value measures the level of insulation provided: the higher the 'R' value of an insulation product, the greater its capacity to prevent heat loss in winter and heat gain in summer.

The Commission tested two products from each company. All four products tested failed to meet the standard of insulation required for the 'R' rating shown on their packaging.

Commerce Commission Director of Fair Trading Deborah Battell said that the Commission will be taking no further action at this stage, as both companies moved quickly to correct the problems and ensure future representations were accurate.

Tasman Insulation had discovered the problem and moved to correct it before they became aware of the Commission's investigation, Ms Battell said.

"The message for the insulation and wider building industries is simple," says Ms Battell.

"Whatever you say on the packaging must be true – if you say your product meets a certain value or grade, it must meet that grade all the time, and you must be able to prove that it does."

"New Zealanders have a right to expect that the claims made on packaging are 100% accurate," says Ms Battell.
Background

Tasman Insulation New Zealand Limited manufactures Pink Batts in New Zealand under licence from Owens Corning in the USA. Tasman's share of insulation market in New Zealand is approximately 69 per cent.

Autex Industries' share of the insulation market in New Zealand is estimated at about five per cent.

Investigation. The Commerce Commission began its investigation after the Energy Efficiency and Conservation Authority (EECA) raised concerns about results arising from a test by its Australian counterpart.

Tests were carried out by BRANZ, an independent and accredited testing agency.

'R' value. The 'R' value is a measure of an insulation product's capacity to resist heat flowing through it. The higher the 'R' value of an insulation product, the greater its capacity to prevent heat loss in winter and heat gain in summer.

ENDS

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