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EnergyAustralia greenwashing lawsuit to set precedent over 'offset' claims

The energy utility is the latest big company to be targeted in a greenwashing lawsuit. But this one could be significant for the whole economy.

Nic Seton, CEO of Australian Parents for Climate Action (second from left), and David Hertzberg, senior associate at Equity Generation Lawyers (second from right). AAP/Miklos Bolza.

EnergyAustralia is the latest major Australian company to be targeted by climate activists in a greenwashing lawsuit, in the first big test for corporate marketing of 'carbon neutral' products.

Climate advocacy group Australian Parents for Climate Action, or AP4CA, alleges Energy Australia's 'Go Neutral' product is misleading consumers because the company still relies on fossil fuel production, according to a lawsuit filed in the Federal Court.

It is the first time a company's claims over a carbon neutral product have been tested under consumer law in the courts.

The group's case comes as regulatory scrutiny from the securities and consumer watchdog has increased in recent months.