COURT ORDERS $2 MILLION FINE UNDER WATER EFFICIENCY LABELLING AND STANDARDS SCHEME

On 9 December 2022, the Federal Court of Australia handed down the judgment in the first civil penalty case under the Water Efficiency Labelling and Standards Act 2005.

The Water Efficiency Labelling Scheme (WELS) regulates water efficiency standards for products such as taps, showers, toilets, dishwashers, and washing machines. Registration and labelling, including star ratings, enable consumers to make informed choices about the water efficiency of the products they are buying.

The Court ordered Perth-based companies Renaissance Bathrooms, Traditional Taps, Castironbaths, and Belfast Sinks, along with the sole director of all four companies, Mr Andrew Shaw, to pay a total of $2.195 million for supplying tap, shower, and lavatory products that were not registered or labelled as required by the WELS Act.

Of that total, a sum of $200,000 was awarded against Mr Shaw personally for being “knowingly concerned” in the contraventions of two of his companies.

Renaissance Bathrooms advertised, and Belfast Sinks sold, unregistered products, or registered products without labelling.

Mr Shaw admitted to permitting this conduct by his companies even though he knew that products were required to be labelled, in accordance with the WELS Act prior to advertising or sale.