Solar companies fined $145K for fake country of origin claims

Two solar companies and one individual have been fined a combined $145,000 for publishing fake testimonials and misleading consumers about their products’ country of origin.

P&N Pty Ltd (trading as Euro Solar) and Worldwide Energy and Manufacturing (WEMA, formerly trading as Australian Solar Panel) were ordered by the Federal Court to pay combined penalties of $125,000, following action by the Australian Competition and Consumer Commission (ACCC).

Nikunjkumar Patel, the sole director of P&N and WEMA, was also fined $20,000 for his involvement in the affair.

The Federal Court found that video testimonials published on YouTube by P&N and written testimonials published on WEMA’s website were not made by genuine customers.

Despite the company claiming that it manufactured solar panels in Australia, the Federal Court found that they had, in fact, been made in China.

“This is the ACCC’s first litigated outcome in relation to the specific prohibition against fake testimonials under the Australian Consumer Law,” said ACCC Chairman Rod Sims.

“Consumers should be able to trust that testimonials give honest feedback about a consumer’s experiences with a service or product. If they are not genuine, consumers may be enticed into making a purchase that they would not have otherwise made.”

The presiding judge found that Patel and the companies engaged in careless and reckless conduct, and knew that the representations they made were both false and misleading.