District of Columbia Sues 4 Oil Majors for Misleading Consumers on Climate Change

June 26, 2020

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by Valerie Volcovici (Insurance Journal/Reuters) The attorney general for the District of Columbia on Thursday filed a lawsuit against Exxon Mobil Corp, BP Plc, Chevron Corp, and Royal Dutch Shell Plc for “systematically and intentionally misleading” consumers about the role their products play in causing climate change, the latest action by a U.S. attorney general against the oil and gas industry.

The lawsuit brought by Attorney General Karl Racine comes a day after Minnesota AG Keith Ellison filed a lawsuit against the American Petroleum Institute, Exxon Mobil and Koch Industries for violating state laws barring consumer fraud, deceptive trade practices and false advertising.

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“The defendants violated the District’s consumer protection law by concealing the fact that using fossil fuels threatens the health of District residents and the environment,” Racine said in a statement.

The intent of the legal action is to “end these disinformation campaigns and to hold these companies accountable for their deceptive practices,” he said.

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Counterparts in California, New York and Massachusetts also filed lawsuits against oil majors but the Minnesota and DC lawsuits focus on consumer protection. READ MORE

District of Columbia Sues Four Oil Majors for Misleading Consumers on Climate Change (New York Times)

Prepared Remarks: Exxon Mobil/BP/Chevron/Shell Lawsuit (Office of the Attorney General for the District of Columbia, Karl A. Racine)

Complaint

New lawsuit against fossil fuels (Politico's Morning Energy)

Excerpt from Office of the Attorney General for the District of Columbia, Karl A. Racine: We bring this suit under the District’s Consumer Protection Procedures Act, which is a broad statute that prohibits businesses from engaging in deceptive trade practices and misleading D.C. consumers.

An OAG investigation revealed that over more than a half a century, these four companies have engaged in a complex, multi-million-dollar public relations campaign to undermine the growing body of scientific research demonstrating that climate change is man-made.

Drawing inspiration from Big Tobacco, the companies financed and employed industry associations and front groups to distort and conceal the dangers their fossil fuel products represented.

They hired a well-known fake grassroots group—the Advancement of Sound Science Coalition—used in the tobacco industry’s disinformation campaign to manufacture public opposition to climate researchers and activists.

And they hired some of the same scientists who falsely disputed the connection between tobacco use and cancer to do the same for fossil fuels and climate change.

As early as the 1950s these four companies knew carbon emissions created by burning fossil fuels would, in due time, pose an existential threat to humanity.

These findings guided the companies as they privately made investments to protect their fossil fuel infrastructure from the effects of rising global temperatures.

Publicly, however, they worked systematically and intentionally to generate doubt that climate change is man-made.

They generated media coverage overhyping bogus research disputing the scientific consensus.

They published “advertorials”—advertisements masquerading as editorials—in major publications including The Washington Post and The New York Times, falsely arguing research did not prove that burning fossil fuels destabilized the planet’s natural cycles.

And when, decades later, public awareness made the companies’ continued denial less effective, the companies pivoted their spin machine to “greenwashing.”

In advertisements across newspapers, online, and in the District’s metro system, Exxon Mobil, BP, Chevron, and Shell all exaggerate their commitment to green, renewable energy sources.

These ads obscure the fact that none of these companies invests more than 2.3 percent of capital expenditures in renewables—and that BP, Exxon Mobil, and Shell are planning to expand fossil fuel production by 20 to 35 percent through 2030.

And now that the companies are seeking to sell more natural gas, they market it as “safe,” “clean,” and “emissions reducing.”

The fact of the matter is that no fossil fuel product is “safe,” nor “clean.” It all creates carbon emissions, and it all represents a threat to consumers.

Today, scientists calculate that the world has less than a decade left to get carbon emissions under control—or face catastrophic impacts.

The District of Columbia, sitting between two rivers that are rising, is at particular risk.

The Tidal Basin now floods around 30 times a year—a fivefold increase from a few decades ago.

And as our already-hot and muggy summers grow more punishing, our residents—especially District seniors and other vulnerable residents—will be exposed to heat illness.

These companies were not simply irresponsible in their reckless pursuit of profit.

Their deceptive advertisements and misleading claims violate the D.C. consumer protection law.

We are bringing this lawsuit to end these disinformation campaigns and to win relief for District consumers. READ MORE

Excerpt from Politico's Morning Energy:"The harm comes to consumers when they're not given full and accurate information about the purchases that they're making," said D.C. Deputy Attorney General Kate Konopka. "One, there is no requirement for us to show harm, but two, really the point of the matter is that these consumers have been harmed by their failure to be able to make informed purchasing decisions."

Chevron spokesperson Sean Comey called the claims "meritless" and said this type of litigation "detracts from constructive efforts to address the important policy issues presented by climate change." ExxonMobil spokesperson Casey Norton also called the suit "baseless and without merit," adding it "further demonstrates the ongoing coordinated, politically motivated campaign against energy companies."

A spokesperson for Shell said the company agrees "action is needed now on climate change" but said "addressing a challenge as big as climate change requires cooperation between all segments of society, not lawsuits that masquerade as climate action and impede the collaboration needed for meaningful change." BP declined to comment on the lawsuit.

— In the Keystone State: On the same day that D.C. launched its lawsuit, Pennsylvania's attorney general released a grand jury report that recommended the state pass a set of laws tightening regulations on natural gas drilling, including expanding no-drill zones to 2,500 feet from homes from the current limit of 500 feet and giving the AG's office jurisdiction to start investigations rather than waiting for referrals from other departments, Pro's Ben Lefebvre reports.

The action in a state home to the fracking boom marks an aggressive push to confront companies it has found responsible for increased air and water pollution. It comes on the heels of charges last month by the state against Cabot Oil and Gas over allegations regarding its environmental record and a $150,000 fine to Range Resources for leaks and spills. READ MORE