Fraudulent Specs in
Counterfeit Units Sold
in Canada

Innova's Million Dollar
Challenge

This report exposes the fabricated performance data published by the copycat units modeled after the Innova heat pumps. It documents the false ratings, the manipulated numbers, and the full scope of misrepresentation and fraud used by these brands.

 

Designline, Island Air, Applied Comfort, and other brands relabel the same Chinese made unit by Nordica for sale in Canada.

Williams, Ortech, MitsAir, Silktech,Techno and Kinghome relabel a different Chinese made unit by Zymbo for sale in Canada

Wuxi Hammer, another Chinese manufacturer, owns the Inspiron Air brand, and also makes units for Multi Mfg.

Exinda, yet another Chinese company, offers units under its own brand, which are marketed in Canada by Mits Airconditioning.

These cheap Chinese knockoffs, all use fake performance data.

At Innova, we are fully aware that publishing this report invites defamation claims from the brands we call out. If anything we state here is false, any or all of these brands can take us to court and win substantial damages.

We welcome any litigation; our lawyers are ready.

In discovery, these brands would be forced to cooperate with independent laboratory testing, which would prove their performance claims are false. They will not sue us because the data is fake, and we will continue exposing them.

These brands cheat by publishing performance numbers that are not derived from any laboratory testing. They invent fake SEER, SEER2, EER, EER2, CEER, COP, COP2, and BTU values that defy NRCan testing methods. None of the units, not a single one of these copycats, is listed, as required by law on the NRCan database!
Even if they were listed in the NRCan database now, their ratings would still be fabricated rather than measured and therefore illegal.

Quick Summary

This report presents substantial technical and legal evidence of a systematic pattern of fraud, illegal activity, and misrepresentation of performance ratings across several heat pump brands sold in Canada, including Applied Comfort, DesignLine, Ortech, Mits Air, Forrest Air, Dubbll, Techno, GeoSmart NetZero, Williams, Silktech, Kinghome, Multi Mfg, Inspiron Air, Exinda, and others.

These companies use cheap heat pumps manufactured by Chinese manufacturers Nordica, Zymbo, Wuxi Hammer and others, and publish efficiency data that not only violates NRCan-required testing methods but is also outright fabricated. As a result, everyone involved in selling, specifying, or installing these units faces significant legal and financial risks due to compliance failures.

Key Findings: Performance Discrepancies and Regulatory Evasion

  • Fraudulent and Missing Performance Data:
    Critical performance metrics—including BTU, SEER, SEER2,
    CEER, EER, EER2, COP, COP2, and HSPF2—are faked to appear compliant and impressive, rather than actual laboratory results. Our analysis and testing reveal mathematical contradictions and performance claims that cannot be reconciled with engineering principles and the laws of thermodynamics, demonstrating that the published figures are fundamentally inaccurate. Some brands simply do not publish the required data at all.

  • Misclassification to Appear Compliant
    Some brands attempt to classify their units as Room Air Conditioners (“RAC”) but fail to use the required CEER ratings. Others use the EER ratings for Packaged Terminal Heat Pumps (“PTHP”), yet their units do not meet the definition of a PTHP under Natural Resources Canada (NRCan) regulations.

  • Failure to Meet Minimum Efficiency Standards
    By failing to classify properly and publish accurate numbers, these units systematically fail to meet the current minimum efficiency standards. This constitutes a direct violation of the Energy Efficiency Act, rendering the units non-compliant and illegal to sell and install in Canada, even if they were listed in the NRCan database.

  • Liability:
    • Non-compliance creates significant legal exposure for all participants:
    • Brands face substantial fines and legal action from the NRCan and the Competition Bureau for submitting unsubstantiated data.
    • Engineers and Specifiers face professional malpractice claims arising from the specification of non-compliant equipment
    • Installers risk violating state and local mechanical codes.
    • Building Owners are operating non-compliant equipment, leading to potential litigation from residents, regulatory sanctions, and forced replacement costs.

Illegally Imported and Sold in Canada

None of the Copycats are listed in the database of NRCan as required by law! Not as Room Air Conditioners, not as Heat Pumps, and not even (incorrectly) as PTHP! Zero.

Energy Efficiency Act, Section 5(1)

“Every dealer who, for the purpose of sale or lease, ships an energy-using product from one province to another or imports an energy-using product into Canada shall provide the Minister […] with prescribed information…”

“A report must be filed only when a product model is not already listed in the NRCan database.”

If a company or contractor tells you a model “doesn’t need to be on the list,” they are incorrect. Every regulated heat pump (under 65,000 Btu/h) must be reported to the Minister to be legally present in the Canadian market.

Penalties Bill S-4 / 2026 Context

As of recent updates to the Act (Bill S-4), this law has been sharpened significantly to catch online “grey market” sellers:

Here are some categories the units can be classified as, correctly or incorrectly, and none of the copycat units are listed in any of them. You can check the database yourself and watch a video we made for each database on March 16, 2026.

PTAC/ PTHP (not legal)
Air conditioners, packaged terminal, commercial
Heat pumps, packaged terminal, commercial

Room Air Conditioner
Air conditioners, room

Single Package Vertical 
Air conditioners, single package vertical
Heat pumps, air source, single package vertical

Single Package
Air conditioners, single package, single phase
Heat pumps, air source, single package, single phase

Every single copycat is an illegal copycat. Not just illegal because of the fake ratings, but inherently illegal because they failed to list them, as required by law. Even if they list the units now with fake specs, they will remain illegal because the specs are fake.

The Million Dollar Challenge

Innova guarantees that the performance numbers published by “The Fraudulent Copycats” are fake.

Innova will pay one million CAD to any manufacturer, brand, distributor, engineer, entity, or anyone who can produce a certified, independent laboratory test report corroborating the claimed capacity and efficiency when tested in accordance with NRCan regulations.

How Everyone Gets Hurt 

Salesman discussing HVAC products with a customer.

Sellers

Private labelers, Manufacturers, Distributors, Dealers, Resellers

Selling a non-compliant HVAC product is a direct violation of the Energy Efficiency Act and NRCan regulations. Sellers are exposed to:

Federal Civil Penalties
NRCan may prosecute for non-compliance for every unit distributed in commerce. Penalties stack and can reach six-figure outcomes per model.

Product Seizure and Forced Recall
NRCan can seize inventory, block further distribution, and mandate recall or destruction of illegal equipment.

Competition Bureau enforcement… Competition Act Section 52
Publishing fabricated ratings constitutes a deceptive trade practice under the Competition Act. This exposes the seller to federal enforcement, mandatory corrective advertising, and civil penalties.

Breach of Contract and Indemnification Claims
Developers, contractors, and property owners can sue the seller for damages if the installed equipment fails inspection, fails commissioning, or causes code violations.

Class-Action Exposure
Tenants, condominium associations, and homeowners’ groups can sue for misrepresentation, damages, inflation in energy costs, or unsafe equipment.

Loss of Manufacturer and Distributor Licenses
OEM partnerships and distribution channels can be terminated for selling illegal equipment.

Selling these units is both legally and financially dangerous.

HVAC installers working on equipment installation.

Installers

Contractors, HVAC technicians, MEP firms

Installing non-compliant equipment exposes the installer to direct professional and legal risk.

Violation of state and local mechanical codes
Most jurisdictions require installed equipment to be listed, certified, and compliant with NRCan minimums. Installing unlisted units violates the code.

Loss of contractor license
Boards can suspend or revoke licenses for installing non-certified or illegally rated equipment.

Civil liability for damage
If the unit fails, performs below specifications, overdrafts electrical circuits, leaks refrigerant, or causes mold or structural damage, the installer can be sued.

Professional negligence claims
Installing non-certified equipment is a breach of standard practice.

Insurance denial
Work performed with illegal equipment can void contractor liability insurance coverage.

Installers who choose these units are assuming direct legal and financial responsibility.

Loss of Contractor License
Boards can suspend or revoke licenses for installing non-certified or illegally rated equipment.

Civil Liability for Damage
If the unit fails, performs below specifications, overdrafts electrical circuits, leaks refrigerant, or causes mold or structural damage, the installer can be sued.

Professional Negligence Claims
Installing non-certified equipment is a breach of standard practice.

Insurance Denial
Work performed with illegal equipment can void contractor liability insurance coverage.
Installers who choose these units are assuming direct legal and financial responsibility.

Engineer reviewing HVAC system specifications and installation plans.

Engineers

MEP engineers, Specifiers, Consultants

Engineers face a high risk of exposure if they specify or approve the use of illegal equipment.

Professional malpractice exposure
Specifying equipment that does not meet SEER2 or CEER requirements, or does not appear in AHRI/NRCan Searchable Product Lists with accurate data, is a breach of engineering duty.

Loss of PE license
Stamping drawings with illegal or misclassified equipment creates a direct disciplinary risk.

Design liability
If the equipment fails to meet code, fails load calculations, causes tenant complaints, or drives excessive energy use, the engineer is liable for damages.

Insurance exposure
Errors & Omissions insurers reject claims involving knowingly illegal equipment.

Any engineer who signs off on these units is accepting personal liability.

Building owner reviewing property systems and compliance requirements.

Building Owners

Developers, Property managers, REITs, Condo associations

Owning a building with illegal HVAC equipment exposes the owner to substantial financial and legal risks.

Code violations and failed inspections
Buildings containing non-certified equipment can fail Local Authority inspections.

Forced removal and replacement
Authorities can mandate the removal of every installed unit, at the owner’s expense.

Insurance cancellation or claim denial
If the equipment is not legal or not NRCan-compliant, insurers may deny coverage or void property insurance policies.

Reduced property value
Buildings with illegal equipment face valuation reductions, impaired financing, and lender objections.

Tenant lawsuits and warranty claims
Tenants can sue for non-performance, high heating/cooling costs.

Fines and enforcement actions
Owners can be fined for every illegal unit installed or operated within the building.

Owning or operating these units exposes the property to material legal and financial damage.

Residents using HVAC system in a residential setting.

End-Users

Residents, Tenants, Homeowners

Even the resident or end-user is exposed to risk when using non-compliant equipment.

High energy bills and poor performance
Because the published performance data is fake, real-world operation costs are substantially higher than the claimed ratings.

End-users bear financial burdens due to equipment that consumes more power and has limits.

Contact Us to Discuss This Fraud with Our Engineers