AGL served with class action over carbon neutral products

• AGL Energy has been served with class action proceedings filed in the Federal Court of Australia.
• The proceedings allege misleading or deceptive conduct and breaches of consumer guarantees under the Australian Consumer Law, in relation to AGL’s carbon neutral products.
• AGL says it takes its compliance obligations seriously and intends to vigorously defend the proceedings.

AGL Energy Limited (ASX:AGL) has been served with class action proceedings filed in the Federal Court of Australia.

The proceedings allege AGL engaged in misleading or deceptive conduct and breached consumer guarantees under the Australian Consumer Law.

Those allegations relate to AGL’s carbon neutral products.

The action was filed by Slater and Gordon Lawyers, with Michael Ihle as lead applicant, according to the firm.

Slater and Gordon alleges most of the carbon offsets AGL used did not prevent, reduce, remove or store emissions equal to those from customers’ energy use.

The firm says the claim concerns carbon neutral electricity and gas add-ons sold for around $1.50 a week since July 2020, and could cover hundreds of thousands of households and small businesses.

AGL said it takes its compliance obligations seriously and intends to vigorously defend the proceedings.

The allegations are untested and no defence has yet been filed.

AGL supplies around 4.6 million customer services and has operated in Australia for more than 185 years.

Its generation portfolio comprises coal and gas-fired generation, wind and hydro, plus batteries and other storage technology.

The announcement was authorised for release by AGL’s Market Disclosure Committee.

AGL Energy shares closed down 1.80% at $8.74 on Wednesday.