The Australian Competition and Consumer Commission has instituted proceedings in the Western Australian Registry of the Federal Court against DuluxGroup (Australia) Pty Limited for alleged contraventions of the Competition and Consumer Act 2010 (the Act) in relation to the promotion of the temperature reducing capabilities of its InfraCOOL and Weathershield Heat Reflect paints.
The ACCC alleges that Dulux made false, misleading or deceptive representations by falsely representing that, when compared to standard paint of the same colour:
1. Dulux InfraCOOL paint applied to the roof of a house can and will:
- Reduce the interior temperature of the living zones of that house by 10°C;
- Significantly reduce the energy consumption costs associated with the house; and
- Significantly reduce the carbon footprint, or environmental effect, associated with the house by reducing energy consumption costs associated with the house.
2. Dulux Weathershield Heat Reflect paint applied to the exterior wall of a house can and will:
- Reduce the surface temperature of the external walls by up to 15°C;
- Significantly reduce the interior temperature of the house; and
- Significantly reduce the energy consumption costs associated with the house.
The ACCC alleges that Dulux did not have reasonable grounds for making any of these representations.
The ACCC alleges that Dulux’s conduct was national and that these representations were made in a wide variety of media, including on the Dulux website and Facebook page, in lifestyle magazines, major regional newspapers across Australia, television advertisements, in-store pamphlets, flyers and colour-cards, and on the paint tins themselves.
“Businesses are free to make claims in the promotion of their products, as long as their claims are truthful and have a reasonable basis,” ACCC Chairman Rod Sims said.
“Consumers should have confidence that they are able to rely on product information provided by businesses when selecting products to purchase.”
“Businesses have a responsibility to ensure that accurate information is given to consumers about the performance characteristics and benefits of their products. This is particularly the case where consumers may pay a premium to purchase products that are promoted as delivering particular benefits,” Mr Sims said.
“The ACCC believes Dulux has a corporate responsibility to make sure any claims it makes are accurate and backed by adequate scientific and/or technical evidence.”
“This is especially so in relation to energy use claims given widespread consumer concern about the rapid increase in Australia’s electricity prices,” Mr Sims said.
The ACCC alleges that Dulux’s conduct contravened sections 18 and 29(1)(g) of the Australian Consumer Law (which is Schedule 2 of the Act), as well as equivalent sections in the Trade Practices Act 1974, which applied prior to 1 January 2011.
The ACCC is seeking:
- Declarations that Dulux contravened the Act;
- Injunctions restraining Dulux from engaging in similar conduct in the future;
- A Court order requiring Dulux to publish corrective notices;
- Orders for non-party consumer redress;
- Penalties; and
- ACCC costs.
The matter is set down for a scheduling conference on 5 February 2013.