Cavalier accused by rival of 'demonising' synthetic carpets

Monday, 26 July 2021

Cavalier has exited the synthetic carpet market to focus on natural fibres.

Wool carpet manufacturer Cavalier has been accused of “demonising” synthetic carpets by its rival Godfrey Hirst, which is threatening legal action under the Fair Trading Act.

NZX-listed Cavalier announced in July last year that it was exiting the synthetic carpet market to focus on natural fibres as it eyes increased demand for more sustainable products. Its last synthetic carpet rolled off the production line in May.

Sales of wool carpet which were once dominant in New Zealand have fallen to about 15 per cent of the market amid competition from cheaper synthetic carpet. While Cavalier now only sells wool carpet, its larger rival Godfrey Hirst sells both wool and synthetic carpets.

Godfrey Hirst, owned by the New York Stock Exchange-listed firm Mohawk Industries, complained through lawyers Chapman Tripp that since announcing the change to an “all wool and natural fibres strategy”, Cavalier has been demonising synthetic carpets with false and misleading references to single-use plastic bags and microplastics.

Cavalier Corporation’s New Zealand wool carpet business, Bremworth, produced its last roll of synthetic carpet in May 2021.

* Cavalier commits to wool, natural fibre carpets

* Carpet maker Cavalier Bremworth's three NZ factories are on the market for sale and leaseback

Cavalier has likened a household of synthetic carpet to the equivalent of 22,000 single use plastic bags, which Godfrey Hirst alleged was false and misleading.

Godfrey Hirst accused Cavalier of lauding the environmental benefits of wool carpets without acknowledging the full environmental impacts of wool carpet manufacturing, including livestock farming, wool scouring, chemicals use and synthetic backing.

Chapman Tripp said Godfrey Hirst and other suppliers of synthetic carpet to the New Zealand market were being harmed by Cavalier’s conduct. Consumers, retailers and potential Cavalier investors were being misled and deceived, and substantially harmed, the firm said.

Through its lawyers, Godfrey Hirst threatened to take proceedings against Cavalier for breaching the Fair Trading Act if its rival failed to correct what it saw as misleading material. Chapman Tripp gave Cavalier a week from its July 16 letter to remedy the statements. That date, July 23, has now passed but a spokesman confirmed no legal action has yet been taken.

In response, Cavalier’s lawyers Russell McVeagh said the carpet maker was confident its publications complied with all laws, including the Fair Trading Act. The lawyers noted Godfrey Hirst had not provided any specific examples of the disputed claims which limited Cavalier’s ability to respond.

Russell McVeagh said the “100 per cent New Zealand wool” claim was factually accurate, could be substantiated, and a reasonable consumer would be aware the wool must be treated with some form of chemicals.

The law firm countered that some of Godfrey Hirst’s claims on its website could not be substantiated.

Russell McVeagh asked Godfrey Hirst to substantiate some of those claims, including the use of 100% New Zealand wool, healthier fibres, environmentally friendly carpets and the description of a “corn carpet” which was largely synthetic.

“We see this legal threat as a distraction and an attempt to stifle legitimate competition and consumer choice,” said Cavalier chief executive Greg Smith.

“We won’t shy away from promoting the virtues of wool and countering misconceptions in the market to enable customers to make well-informed flooring choices – and we firmly stand by our decision to focus on wool and natural fibres.”

The flooring market saw a huge switch from wool to nylon carpets in the late 1990s and early 2000s and this had a massive negative impact on the New Zealand wool sector, he said.

For Godfrey Hirst, the issue was not about the support of wool carpet, but the misleading conduct of Cavalier and its subsidiary Bremworth, a spokesman said.

“While both businesses freely acknowledge the benefits of wool carpets, Bremworth, now that it is not in a position to provide synthetic carpets, is seeking to denigrate them in a misleading, unfair and unsubstantiated manner,” the spokesman said.