London, December 06, 2025
Australia’s competition regulator, the ACCC, has initiated Federal Court proceedings against Australian Gas Networks (AGN), challenging its advertising campaign that depicts gas as “clean and green” and claims it will be renewable within a generation. The ads, displayed across TV, digital platforms, and South Australian buses, are alleged to mislead consumers on the environmental credentials of gas.
Legal Action and Allegations
The Australian Competition and Consumer Commission (ACCC) alleges that AGN, a key gas network operator in South Australia and other states, made unqualified and unsupported claims in its “Love Gas” advertising campaign. The campaign asserted that gas would become renewable “within a generation” and portrayed gas as an environmentally friendly energy choice. The ACCC contends these claims lack reasonable evidentiary support and present a misleading impression to consumers.
Gina Cass-Gottlieb, ACCC Chair, pointed out that distributing renewable gas at scale and at an economic price is not currently achievable. She stated the regulator’s position that AGN knowingly made a firm promise about renewable gas being delivered imminently, despite uncertainties surrounding renewable gas’s future viability. This could deceive consumers into believing gas is a low-emission fuel available today and that a full transition to renewable gas is both imminent and guaranteed.
Broader Regulatory Crackdown on Greenwashing
This case arises amid a broader regulatory effort in Australia targeting greenwashing across industries, especially fossil fuel companies. In 2024, the Australian Securities and Investments Commission (ASIC) imposed an A$11.3 million penalty on Mercer Superannuation for misleading sustainability claims in its investment products. The federal government has pledged enhanced funding and enforcement to scrutinize environmental claims made by energy and finance sectors.
The ACCC’s action against AGN is one of the first significant legal challenges addressing advertising from fossil fuel infrastructure providers related to energy transition promises. It signals increasing regulatory intolerance toward broad environmental claims that are not substantiated by credible evidence.
Criticism of Gas Industry Messaging and Energy Policy Context
The promotion of gas as a “transition fuel” has generated debate within Australia’s energy policy circles. Some political leaders, including South Australia’s Premier, have supported further gas projects, suggesting they are needed to back up renewable energy sources.
However, experts such as Mark Ogge from The Australia Institute challenge the notion of a domestic gas shortage. Ogge highlights that Australia exports significantly more gas than it uses domestically for electricity and contends that new gas projects do not necessarily increase supply available to residents. Furthermore, cheaper and cleaner alternatives like battery storage solutions are increasingly accessible for firming renewable energy.
Environmental groups and researchers criticize gas industry campaigns for spreading misinformation and contributing to public misunderstanding of gas’s environmental impact. These advertisements may misrepresent the urgency and feasibility of transitioning away from fossil fuels, potentially delaying more sustainable energy investments.
Potential Outcomes and Industry Implications
The Federal Court will assess whether AGN’s advertising breaches Australian consumer law by misleading or deceiving the public. If found liable, AGN could face substantial financial penalties, be mandated to implement corrective advertising, and be restricted from making future unsubstantiated environmental claims.
This legal challenge is closely monitored by environmental advocates, energy experts, and companies engaged in energy sector marketing. It exemplifies the regulator’s message that environmental claims must be rigorously supported by credible evidence. As Australia progresses toward its net-zero goals, legal accountability for misleading climate-related advertising is setting a precedent for industry transparency and consumer protection.