ACCC Launches Federal Court Action Against Australian Gas Company For False Advertising
Image: Image from the Love Gas Advertisements from Australian Gas Networks Limited that the ACCC have alleged made false and misleading enrivonmental claims about its fuel
The ACCC has launched Federal Court action against gas distributor Australian Gas Networks Limited, alleging it made false and misleading representations in its ‘Love Gas’ TV and digital advertising campaign.
The advertisements, which ran during 2022 and 2023 on free-to-air television, streaming services and on YouTube claimed that the gas it distributes to households on its network would be renewable within a generation.
The ACCC have alleged Australian Gas Networks misled millions of consumers and did not have reasonable grounds to make the unqualified claim.
“We allege that Australian Gas Networks engaged in greenwashing in its ‘Love Gas’ ad campaign,” ACCC Chair Gina Cass-Gottlieb said.
“We allege that the ads overstated the likelihood of Australian Gas Networks overcoming significant technical and economic barriers to distribute renewable gas to households within a generation.”
“It is not currently possible to distribute renewable gas at scale and at an economically viable price, and throughout 2022 and 2023 it was highly uncertain whether, and if so when, this would be possible,” Cass-Gottlieb said.
Renewable gas refers to gaseous fuels that do not produce any additional carbon emissions in their production and use.
Australian Gas Networks’ renewable energy claims
Australian Gas Networks Limited (AGN), is a major gas distribution firm owned by a Hong Kong-based consortium led by CK Infrastructure Holdings Ltd (CKI) and owns and operates gas transmission and distribution pipelines. AGN services more than 1.3 million customers via about 27 000km of distribution networks and 1300km of gas pipelines.
The ACCC have alleged that although AGN knew the future of renewable gas was “uncertain”, it made an unjustified claim to consumers that it would distribute renewable gas to households “within a generation.”
“We say these ads were intended to encourage consumers to connect to, or remain connected to, Australian Gas Networks’ distribution network and to purchase gas appliances for their homes, based on the misleading impression they would receive ‘renewable gas’ within a generation,” Ms Cass-Gottlieb said.
“We consider that consumers were deprived of the opportunity to make fully informed choices, in accordance with their values, about the most appropriate energy sources for use in their homes, the household appliances they should invest in, and the steps they could take to reduce greenhouse gas emissions.”
ACCC: Consumers misled by Australian Gas Networks Ltd ads
The claims by Australian Gas Networks Limited were contained in four advertisements which all featured a young girl and her father using gas appliances in the home for cooking, bathing or heating. The advertisements then fast-forward in time to show the girl, now portrayed as a young adult, engaging in the same household activities.
The ads featured a voiceover stating the following, or similar:
- Some things never change, but the flame we use will.
- It’s becoming renewable.
- Controllable, reliable gas.
- For this generation and the next.
The ads failed to contain any qualifications, fine print or disclaimers.
“Businesses that make environmental claims about the future must have reasonable grounds for those claims, or they will be taken to be misleading under the Australian Consumer Law. Businesses must take care when they promote emissions-reduction measures that their claims can be backed up with evidence, and that they are realistic about emerging energy technologies and when changes are likely to be achieved. Misleading claims not only break the trust of consumers, they also breach the Australian Consumer Law.”
The ACCC is seeking declarations, penalties, costs and other orders.
AGN faces fines of up to $50 million for each violation.
You May Also Like
