Commerce Commission Decision to Prosecute

NZX and Media Statement 6 July 2009
Methven Statement in respect of Commerce Commission Decision to Prosecute for Alleged Breaches of the Fair Trading Act 1986

The Commerce Commission today advised that it intended to prosecute Methven under the Fair Trading Act for allegedly making misleading claims in advertising for its Satinjet twin jet showerware technology.

The complaint, understood to be initiated by a competitor, relates to the extent of water savings achieved by the Satinjet technology over conventional showers. Methven says the claims made were intended to be indicative of savings achievable for showers connected to mains pressures where that system provided flow rates of 20 litres per minute.

"Satinjet can indeed deliver the savings claimed, along with a luxury experience, versus a conventional shower run on mains pressure, provided the flow rate reaches 20 litres per minute,” said Methven New Zealand CEO Gary Nel. "Flow rates across households in New Zealand do however vary and those households on low pressure systems may never reach a flow rate of 20 litres per minute."

Methven expressed its disappointment with the decision to prosecute.

"We have co-operated fully with all aspects of the investigation, voluntarily recalling and altering all advertising and marketing material in advance of any decision," said Mr Nel.

"We are not in a position to make any further comment at this stage."

ENDS

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