Methven Fined

Media Statement 4 October 2010
Methven Fined

Methven was fined $50,000 and court costs of $1,200 at a sentencing hearing today (4 October) in the Waitakere District Court after earlier admitting nine charges of breaching the Fair Trading Act.

The prosecution, brought by the Commerce Commission, related to energy and water saving claims made in advertising for Satinjet twin jet showerware technology.
The advertisements, most of which ran for a 10 month period (May 2008 – February 2009) in selected print media and all marketing materials, were recalled and corrected voluntarily before charges were laid. No complaints were received about the advertising from customers, consumers or plumbing merchants.

Methven said the claims made were intended to be indicative of savings achievable for showers connected to mains pressures with flow rates of 20 litres per minute or more.

“There was no deliberate intention to mislead consumers with false information but we accept that the wording of the advertising was, at worst, careless and the comparisons between Satinjet and average or ordinary showers could have been misunderstood. We regret the error. It was inadvertent,” Methven New Zealand CEO, Gary Nel said.

“Satinjet can deliver the savings claimed, along with a luxury experience, versus a conventional shower run on mains pressure, provided the existing flow rate is at least 20 litres per minute and our product is installed as we recommend. The Commerce Commission did not question the savings in these conditions.”

This was the first time Methven had been investigated for breaching the Fair Trading Act and the company had co-operated fully and corrective actions had been implemented.

Advertising approval processes had been tightened to prevent a repeat of this sort of clerical error, retail sales teams trained to ensure they were able to advise shoppers on the right Sainjet model to suit individual water pressure systems and internal staff education and training workshops on obligations under the Fair Trading Act had been run.

The wording Methven now uses in all its marketing material makes it absolutely clear that the savings in water usage are through mains pressure and at variable rates depending on flow. Information is also provided at the point of purchase and in the Satinjet box itself on which model will best suit the customer’s own water pressure environment.

Sustainability is a primary focus for Methven, both in the products it develops and in the way the company operates.

“Methven’s proprietary Satinjet twin jet technology is world-class, delivering a luxury showering experience at lower flow rates without compromise for the planet and has won a raft of important New Zealand and international awards for design, innovation, water conservation and the unique experience our customers have when they take a Satinjet shower,” Mr Nel said.

In March Methven received an honourable mention in the internationally acclaimed Red Dot Awards for the product design and innovation behind Methven’s revolutionary new Shower Infusions. Methven can use the sought-after Red Dot symbol on its collateral to signify its design achievements are among the “best of the best” in the world.

ENDS

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