The consumer watchdog has taken court action against gas distributor Australian Gas Networks, 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.
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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,” 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.”
The ACCC said the 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.
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 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.
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The ACCC is seeking declarations, penalties, costs and other orders.
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.
