Australia – The Australian Competition and Consumer Commission (ACCC) has launched Federal Court proceedings against Australian Gas Networks Limited, accusing the gas distributor of misleading millions of consumers with claims that the gas it supplies will be renewable “within a generation.”
The ACCC alleges that Australian Gas Networks’ “Love Gas” advertising campaign, which ran on television, streaming services and YouTube during 2022 and 2023, contained false and misleading representations about the future of renewable gas.
According to the ACCC, the company suggested without qualification that it would deliver renewable gas to households within a generation, despite knowing it was highly uncertain whether this could be achieved, given significant technical and economic barriers.
“We allege that Australian Gas Networks engaged in greenwashing in its ‘Love Gas’ ad campaign,” ACCC Chair Gina Cass-Gottlieb 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.”
The regulator claims the ads created the impression that switching to or remaining on the company’s gas network—and buying gas appliances—would help consumers secure a “renewable gas” future, despite no realistic timeframe or guarantee such technology would be viable.
“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 their homes,” Ms Cass-Gottlieb said.
The contested advertisements depicted a young girl and her father using gas appliances for cooking, heating and bathing. The scenes then fast-forwarded to show the girl as a young adult continuing the same activities, with a voiceover claiming “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 frames of the ads featured the company’s logo alongside a green flame and the slogans “Love gas. Love a renewable gas future” or simply “Love Gas.”
The ACCC alleges these ads included no disclaimers or qualifications, and therefore breached the Australian Consumer Law, which prohibits false or misleading claims.
“Businesses that make environmental claims about the future must have reasonable grounds for those claims,” Ms Cass-Gottlieb said. “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 from the Federal Court.
Australian Gas Networks is one of the country’s largest gas infrastructure companies, distributing natural gas to around 1.3 million homes and businesses, mainly in Victoria and South Australia, as well as in Queensland, New South Wales and the Northern Territory.
The ACCC investigation followed complaints from consumers and the Australian Conservation Foundation. The regulator’s court action also comes after it issued new guidance in December 2023 warning businesses against making unsubstantiated environmental or sustainability claims.
