Exxon Sued Again for 'Misleading' Advertising

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ExxonMobilย is facing yet another lawsuitย challenging the corporationโ€™s allegedly deceptive behavior related toย climate change. The latest suit, filed May 15 in the D.C. Superior Court, claims the oil major is misleading consumers with โ€œfalse and deceptiveโ€ advertising about its investments in โ€œcleanโ€ย fuels andย technology.

The Washington, D.C.-based environmental nonprofitย Beyond Pesticidesย alleges that Exxonโ€™s deceptive marketing and advertising violates the District of Columbia Consumer Protection Procedures Act. According to the organization, Exxon portrays itself as an environmentally friendly company in ads without revealing the true extent of its business that remains overwhelminglyย invested in exploiting fossil fuels to the detriment of the environment and theย climate.

โ€œExxonMobilโ€™s advertising and marketing mislead the public by presenting ExxonMobilโ€™s clean energy activities as a significant proportion of its overall business,โ€ the complaint states. โ€œIn contrast to ExxonMobilโ€™s representations, its investments and activities in clean energy constitute only a very small percentage of its total business, the majority of which continues to be based in traditional fossil fuels and in petrochemicals, including those used in environmentally harmfulย pesticides.โ€

โ€œThe claims are baseless and without merit,โ€ Exxon spokesperson Casey Norton told DeSmog.ย โ€œWe will defend the company inย court.โ€

The lawsuit points to Exxonโ€™s own numbers depicting the companyโ€™s investments in cleaner alternatives and compares them with the companyโ€™s total capitalย expenditures.

For example, over the last 20 years Exxon says it invested over $9 billion in what it callsย โ€œlower-emission solutions,โ€ while its total capital expenditures during that time were over $465 billion. That equates to less than 2 percent spending on these technologiesย in the past two decades. Another figure Exxon touts is investing up to $100 million in lower-emissions technologies over 10 years, or an average of $10 million a year. This comes out to annual investments of only 0.03 percentย of the companyโ€™s total annual spending, which in 2019 wasย $31.1ย billion.

โ€œNowhere in its advertisements touting clean energy production does ExxonMobil state what percentage of the companyโ€™s investment is in oil and gas compared to how much is invested in clean energy,โ€ the complaintย argues.

Earth Rights International tweet about big oil advertising
Earth Rights International tweetย about what it calls misleading advertising campaigns from Big Oil. Credit: @EarthRightsIntl

The โ€œcleanโ€ solutions that Exxon portrays in marketing and advertising include carbon capture and storage, next-generation biofuels such asย algae, and natural gas. But as the lawsuit explains, these technologies and fuels have their own limitations and problems. This is particularly true for gas, a fossil fuel comprised almost entirely of the potent greenhouse gas methane, which consistentlyย leaks into the atmosphere during production andย delivery.

Exxon and Shell, as part owners of a Dutch petroleum company, have already faced censure in the Netherlands for advertising natural gas as climate friendly.ย The Dutch Advertising Code Authority previously ordered Shell to withdraw a misleading ad claiming the companyโ€™s greenhouse gas emissions were being recycled and used to grow flowers in greenhouses. Major oil companies have been reprimanded for misleading greenwashing advertising elsewhere in Europe asย well.

In December last year, the UK-based environmental law organization ClientEarth filed a legal complaint against BPย over the companyโ€™s recent ad campaigns, claiming the ads misled consumers over BPโ€™s investments in and commitment to clean energy. That was the first known complaint filed with the Organization for Economic Cooperation and Development (OECD)ย for deceptive advertising by a fossil fuel company. Earlier this year,ย as part of the companyโ€™s net zero announcement, BP withdrew one of the ad campaigns, which was targeted in the complaintย and which representedย the oil major’sย first globalย marketing blitz since before the 2010 Deepwater Horizon oil disaster.

Exxon Facing Multiple Lawsuits Over ‘Deceptive’ย Behaviorย 

States, municipalities, and shareholders have all sued Exxon in recent years alleging deceptive behavior in communicating climate risks. Exxon is a defendant along with other fossil fuel companies in climate liability suits filed by over a dozen local governments seeking monetary damages to help pay for climate adaptation costs. But Exxon alone has also faced lawsuits from its own shareholders and from the states of New York and Massachusetts, claiming the oil giant misled investors over its accounting of climate risks to itsย business.

A judge dismissed New Yorkโ€™s lawsuit last fall following a high-profile trial. Massachusettsโ€™ case, filed last October, is proceeding. That case also includes claims of deceptive marketing and advertising, alleging Exxon misled consumers in violation of the Massachusetts Consumer Protection Act. According to the Massachusetts complaint, Exxonโ€™s deceptive behavior has gone on for decades and continues to thisย day.

An illuminating 2017 study by Harvard researchers Naomi Oreskes and Geoffrey Supran examined Exxonโ€™s internal and external communications on climate change between 1977 and 2014. The pair of researchersย found that the more public the companyโ€™s communications were, the more they expressed doubt about the climate crisis. The study concluded that Exxon had misled theย public.

Lawsuits like the Massachusetts attorney generalโ€™s case against Exxon and the new Beyond Pesticides suit argue that Exxonโ€™s alleged deception is ongoing and is unlawful under consumer protectionย laws.

โ€œWe cannot afford to be misled by corporations that are tinkering with solutions to the environmental crises of climate change and biodiversity devastation, which threaten our future over an ever-shortening time horizon,โ€ said Jay Feldman, executive director of Beyond Pesticides. โ€œDeceiving the public into believing that one of the largest petroleum companies in the world is committed to solving the climate crisis, while it continues to devastate the planet, is dangerous and inexcusable, especially given whatโ€™s atย stake.โ€

Main image credit: YouTube screenshot from ExxonMobil โ€œGrowing Fuelโ€ advertisement, premiered Octoberย 2019.ย 

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Dana is an environmental journalist focusing on climate change and climate accountability reporting. She writes regularly for DeSmog covering topics such as fossil fuel industry opposition to climate action, climate change lawsuits, greenwashing and false climate solutions, and clean transportation.

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