Fire Fighting Enterprises will compensate its customers for its failure to carry out contracted services of fire protection systems in various buildings in Queensland.
This is the fourth Australian Competition and Consumer Commission investigation into the fire protection industry in south east Queensland which found that various fire protection companies, including FFE, had failed to perform routine inspection, testing and maintenance of fire protection systems to the relevant Australian Standards between 1990 and 2001.
The Australian Standards require regular inspection, testing and maintenance routines for fire sprinkler, alarm and hydrant systems, and are critical to the reliability and performance of these systems.
"Conduct of this type could have extremely serious consequences as it can endanger lives and property", ACCC Chairman, Professor Allan Fels said today.
From at least 1990 until about September 2001, FFE did not always carry out the fire alarm testing routines or the sprinkler routines it had contracted to perform. FFE also did not have in place an adequate system of verification to check whether routines were due or had been performed. FFE's management was aware that it did not have an adequate verification system and that work had not been carried out, yet continued to renew its existing contracts and enter into new contracts.
FFE also issued certificates of maintenance to building owners without knowing whether such routines had been performed.
In doing so, the ACCC believes that FFE had engaged in conduct which contravened sections 52, 53(aa) of the Trade Practices Act 1974, which prohibits misleading and/or deceptive conduct and false representations regarding the standard or quality of services provided. FFE admitted the conduct and cooperated with the ACCC to rectify the concerns.
Justice Spender of the Federal Court today ordered three-year injunctions preventing FFE from making certain representations about its services and from entering into any agreements to provide services without the capacity to supply those services as contracted. FFE has also provided court enforceable undertakings to the ACCC requiring it to:
- write to customers identified as not having received contracted services and offer compensation
- place advertisements in the Courier Mail to alert previous customers to potential missed services
- conduct an internal review to identify the causes of the subject contraventions of the Act
- upgrade its trade practices compliance program.
"The only likely consequences of its conduct now are that its customers will be credited or refunded for past services not performed, and that future services will be performed as expected", Professor Fels said. "FFE has assured the ACCC that it now properly undertakes all of its fire protection system services".