ESG Enforcement Tracker

Key facts:

The ACCC has launched civil proceedings against Australian Gas Networks Limited for “false and misleading representations” contrary to the Australian Consumer Law and the ACCC’s 2023 guidance on “making environmental claims”. The ACCC brought its action in the Federal Court seeking a declaration, penalties and costs.

Australian Gas Networks is alleged to have misled millions through four advertising campaigns in 2022 and 2023 by claiming, without reasonable grounds and without qualification, that the gas in its network would be renewable within a generation. It specifically highlighted the use of the words “renewable gas future” in the final frame and a voiceover which stated:

 – Some things never change, but the flame we use will;
 – It’s becoming renewable;
 – Controllable, reliable gas; and
 – For this generation and the next.

The ads contain no qualifications, fine print or disclaimers.

If found liable under the Competition and Consumer Act 2010 and Australian Consumer Law, Australian Gas Networks faces a maximum penalty equal to the greatest of the following:

 – AUD$50,000,000;
 – if the Court can determine the value of the ‘reasonably attributable’ benefit obtained, three times that value; or
 – if the Court cannot determine the value of the ‘reasonably attributable’ benefit, 30% of the corporation’s adjusted turnover during the breach turnover period for the contravention.