ACCC sues gas company, saying its “love gas” campaign amounts to greenwashing

Millions of Australian consumers have been misled about the future of gas in a series of advertisements claiming the resource will become renewable within a generation, the Australian Competition and Consumer Commission says. 

The regulator has launched what it calls its biggest greenwashing lawsuit against Australian Gas Networks over the “love gas” campaign in Federal Court on Thursday, alleging it “overstated” the likelihood of producing renewable gas. 

But the company behind the claims has called the legal action disappointing and will defend its actions.

The court case follows complaints about the ads from viewers and the Australian Conservation Foundation, and comes in a week in which the City of Sydney and the Victoria government have refined plans to phase-out gas appliances and hot water systems. 

Four Australian Gas Networks advertisements ran on free-to-air television and streaming services for eight months in 2022 and three months in 2023, featuring a young girl and her father using gas appliances. 

Statements aired in the advertisements included claims gas was “becoming renewable,” was “for this generation and the next,” and ended with the line “love a renewable gas future”. 

Renewable gases, such as hydrogen and biomethane, are not available to Australian consumers. 

The advertisements did not include qualifications for its statements, 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,” she said.

“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.”

Making unfounded claims about renewable energy could deprive consumers “of the opportunity to make fully informed choices” about their future appliances and efforts to reduce greenhouse gas emissions, Ms Cass-Gottlieb said. 

The commission will seek declarations, penalties and costs from Australian Gas Networks, although she said it was “very focused on in-principle penalties” to deter greenwashing claims. 

Fines for breaching Australian Consumer Law can reach $50 million for corporations.

In a statement, Australian Gas Networks said it would defend its advertisements and the allegations made against it. 

“We always strive to provide clear and accurate communications about the role and benefits of natural gas today and renewable gas into the future,” the statement said.

“For this reason, we are disappointed with the ACCC’s decision to take proceedings and will be defending these claims.”

Australian Gas Networks operates pipelines and distribution networks that service 1.3 million businesses and households in South Australia, Victoria, Queensland, NSW and the Northern Territory. 

Source: AAP