The Commerce Commission said on Friday it had reached an interim agreement with Euro Corp Ltd and lifted its advice not to sell ductile steel mesh represented as grade 500E.
The commission said agreement was reached after consultation with the Ministry of Business, Innovation & Employment. It allows Euro Corp to sell batches of steel mesh provided they pass specific independent testing and have never failed testing in the past.
As part of the agreement, Euro Corp has signed court-enforceable undertakings that require every current & future batch of 500E grade steel mesh to be tested at an International Accreditation NZ-accredited laboratory. The steel mesh must pass 18 tests/batch (3 sheets, 6 tests/sheet) before being offered for sale as 500E mesh, and all test results must be provided to the commission.
The commission said the testing requirements were in line with an expected clarification to the standard the ministry was developing, after convening a technical advisory meeting with industry & technical experts 2 weeks ago: “The clarification will be designed to ensure a uniform approach to testing steel mesh under the standard (AS/NZ 4671:2001) and remove any confusion over the appropriate testing methodology.”
The commission said it was continuing its investigation into historical non-compliance with the standard, and any batches of steel mesh that failed its testing or any other testing wouldn’t be sold.
“The commission’s investigation into steel mesh is focused on possible misrepresentations as to the performance characteristics of the mesh. Misrepresenting a product as complying with the standard when it does not is a breach of the Fair Trading Act, for which companies can be fined up to $600,000/offence.”
Attribution: Commission release.