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 ACCC alleges Australian Gas Networks misled millions of consumers when it represented, in ads that ran during 2022 and 2023, that the gas it distributes to households on its network will be renewable within a generation.
Australian Gas Networks did not have reasonable grounds for making the unqualified claim about the future of gas, which featured in advertisements run on free-to-air television, streaming services and on YouTube, the ACCC alleges.
"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," Ms Cass-Gottlieb said.
"We allege that even though Australian Gas Networks knew the future of renewable gas was uncertain, it made an unqualified representation 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."
The claims by Australian Gas Networks 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 final frame of each ad featured the company's logo next to a green flame, and the words; "Love gas. Love a renewable gas future"; or just "Love Gas".
The ads did not contain any qualifications, fine print or disclaimers.
"Businesses that make false or misleading environmental claims make it harder for consumers to support businesses that are genuinely working to reduce their environmental impact," Ms Cass-Gottlieb said.
"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.
Background
The "Love Gas" advertising campaign ran between 20 March 2022 to 2 October 2022 and again from 1 August 2023 to 15 October 2023.
Australian Gas Networks is one of Australia's largest gas infrastructure businesses. It owns and operates gas transmission and distribution pipelines.
Australian Gas Networks distributes natural gas to around 1.3 million homes and businesses, principally in Victoria and South Australia, as well as in Queensland, New South Wales and the Northern Territory.
The ACCC commenced this investigation after receiving complaints about Australian Gas Networks from consumers and the Australian Conservation Foundation.
In December 2023, the ACCC published its guidance for businesses on making environmental and sustainability claims. It sets out what the ACCC considers to be misleading conduct and good practice when making such claims, to help businesses provide clear, accurate and trustworthy information to consumers about the current and future environmental performance of their business.
Images from the Love Gas Advertisements
