Mr Forde last month pleaded guilty to three representative charges under the Fair Trading Act for the conduct, which occurred between May 2009 and December 2012.

The charges relate to Mr Forde’s importation and supply of autoclaved aerated concrete (AAC) which is used as a non-structural exterior cladding for buildings. Mr Forde was the founder and controlling mind of the Cavan Forde Group of companies (CFG) that operated as an importer, manufacturer and national wholesale supplier of AAC and related building products. Among other things, CFG developed a Supercrete branded cladding system which comprised AAC panels or blocks, mounting systems, coatings, textures and sealants.

CFG originally had an exclusive agreement to supply Australian made Hebel branded AAC products in New Zealand, but when that agreement ended it was reliant on importing only Chinese-made AAC panels.

Commissioner Anna Rawlings said Mr Forde was responsible for representations that gave the impression the AAC product CFG was supplying was Hebel when the panels were manufactured in China. He also was responsible for publishing design guides that gave the impression that engineering firm Opus had endorsed the AAC cladding system, when it had not.

“Consumers are entitled to rely upon the accuracy of product information and specifications provided to them when making buying decisions. The representations made by Mr Forde’s companies were particularly concerning given some consumers preferred to use the Hebel brand rather than Chinese manufactured materials. This also may have given him an advantage over his competitors who were also selling Chinese product,” Ms Rawlings said.

In sentencing, Judge Michael Crosbie said builders and consumers must have confidence in what they are using and purchasing.

“The representations overall can only be viewed as an attempt to convey the company’s products in the best possible light, even if that meant incorrectly conveying the country of origin and an endorsement by Opus,” Judge Crosbie said.

Background

Cavan Forde is the third defendant to plead guilty in this case. Former owner and director of now-defunct Christchurch Lightweight Concrete Limited, Darryl Campbell, was fined $151,875 in October 2017 for his role in the conduct. The former director of Supercrete Auckland Limited, Christopher Middleditch, was fined $37,500 in February 2018.