Unsubstantiated Claims about Passive House

An NZIA Bulletin raised the issue of unsubstantiated claims. The examples cited were an internet provider and a solar panel retailer, however, the lesson applies equally to architecture, building design and more specifically Passive House. Here’s the relevant section of the Bulletin:

“…a recent warning from the Commerce Commission has highlighted how important it is for businesses to have reasonable grounds for any claims or implications they make about their goods or services. The warning was issued on Monday 18 December to 2017 NZ Fibre Communications Limited (“Stuff Fibre”) for making unsubstantiated claims that it is “Probably NZ’s Fastest Internet."

Stuff Fibre has admitted it did not know if its broadband services were actually faster than that of its competitors and that it had not undertaken any broadband speed comparisons. Stuff Fibre, therefore, had no reasonable grounds for making the claim.

The Commission’s investigation found that by making this claim without any reasonable grounds at the time, Stuff Fibre is likely to have breached the substantiation requirements of the Fair Trading Act 1986. The Commission took the stance that business cannot rely on qualifying a verifiable claim with the word “probably” to get out of the fact it had not actually done its research, and that this caveat was ineffective to prevent potential consumers from being misled.

Last month, solar panel systems retailer New Zealand Home Services Limited (NZHS) was issued with a similar warning over claims it made about the financial benefits of its solar panel installations.

It is important to remember that a claim is unsubstantiated if a business or trader does not have reasonable grounds to make the claim at the time they make it. This applies irrespective of whether the claim is an express or implied claim and irrespective of whether the claim is false or misleading. As you think about the year ahead, take the time to reflect on any claims you make about your goods and services.”

Passive House (or ‘Passivhaus’ in German and sometimes used for clarity) refers specifically to the international Passive House Standard as developed, defined and administered by the Passive House Institute in Darmstadt, Germany. Passive House has a very clear definition and set of requirements so it is possible to check if a building meets the definition and requirements of the standard. It is not a tick-box exercise: rigorous modelling and verification are required in the design and construction stages.