Australian energy retailer AGL is facing a class action in the Federal Court over its 'carbon neutral' gas and electricity products. Law firm Slater and Gordon alleges customers paid a premium for offsets that did not actually deliver the promised climate benefit, calling the claims misleading under Australian consumer law. The case follows EnergyAustralia's settlement over a similar product and the Australian government's decision to phase out the Climate Active label. If the lawsuit succeeds, it could force retailers to provide harder evidence that their carbon credits represent real, additional emissions reductions, not just accounting. The outcome will likely shape how energy companies market environmental claims and use offsets in Australia.
