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Australia's consumer rights regulator alleges Australian Gas Networks misled millions of people with its 'Love Gas' TV and digital advertising campaign over 2022 and 2023, which claimed the gas it distributed to households would be renewable within a generation.
The Australian Competition and Consumer Commission (ACCC) has launched Federal Court action against the gas distributor, alleging it did not have reasonable grounds for making the unqualified claim about the future of gas in its advertisements that ran on free-to-air television, streaming services and on YouTube.
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, with voiceovers stating sentiments such as 'Some things never change, but the flame we use will', 'Controllable, reliable gas', and 'It’s becoming renewable'.
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”.
“We allege that Australian Gas Networks engaged in greenwashing in its ‘Love Gas’ ad campaign,” ACCC Chair Gina Cass-Gottlieb says.
"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 says the ACCC also alleges 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," she says.
"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 consumer watchdog asserts 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," Cass-Gottlieb says.
"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."
An Australian Gas Networks (AGN) spokesperson says the group is "disappointed" with the ACCC's decision to take proceedings and will be defending these claims.
"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 spokesperson says.
AGIG aspires to reduce its reported scope 1 and 2 emissions by 30 per cent from 2020 levels by 2030, and to target net zero scope 1 and 2 emissions across all its operations by 2050, in line with targets set by State and Federal Governments.
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