NYC sues Exxon, Shell, BP and Trade Group over advertising claims – Update

By Dave Sébastien

New York City sued Exxon Mobil Corp., Royal Dutch Shell PLC, BP ​​PLC and the American Petroleum Institute trading group for allegedly misleading consumers about the weather effects of the companies’ products.

The lawsuit, filed in the New York State Supreme Court, alleges that the oil and gas companies and the group violated the city’s consumer protection law by convincing customers that the purchase and use of their products help fight climate change. The city called the move “bogus and misleading” for not disclosing the effects associated with the use of fossil fuel products.

“My Earth Day message to Big Oil: See you in court,” Mayor Bill de Blasio said Thursday. Earth Day is April 22.

The complaint alleges that companies have misinterpreted the size of their investments in low-emission technologies and zero-emission renewable energy on advertisements, social media and other promotional materials. Citing data from the International Energy Agency, the city said investments made up a small percentage of total business activity.

The city compared the industry messages with tobacco company advertising of “low-tar” and “light” cigarettes as healthier options for smoking.

A separate lawsuit filed by the city against Chevron Corp., ConocoPhillips, Exxon, Shell and BP was recently dismissed by the United States Court of Appeals for the Second Circuit. The city sued the companies for damage caused by global greenhouse gas emissions.

“In response to a significant loss in the 2nd Circuit, New York City is now trying to sort out other baseless issues with this lawsuit,” said Paul Afonso, legal director of the American Petroleum Institute. “The record of the past two decades demonstrates that the industry has met its goal of providing affordable and reliable US energy to US consumers while significantly reducing emissions and our environmental footprint.

Shell said it was “disappointed to see New York City bring a new climate change lawsuit after the Second Circuit confirmed the rejection of what is functionally the same action just a few weeks ago. “.

BP said it is not commenting on the pending litigation. The Wall Street Journal also contacted Exxon.

Write to Dave Sebastian at [email protected]

(END) Dow Jones Newswires

04-22-21 1738ET