A New York Supreme Court dismissed New York City’s claims that fossil fuel companies violated the City’s Consumer Protection Law by misleading consumers about the climate change risks of their products and their commitments to renewable and alternative energy sources. Applying “an objective reasonable-consumer standard,” the court concluded the City failed to plausibly allege that the defendants’ statements regarding the environmental benefits of specific products were likely to mislead. The court was not persuaded by New York City’s theory that the companies’ statements were deceptive because they failed to disclose their products’ substantial greenhouse gas emissions. The court found that because the City also conceded that “the connection between fossil fuels and climate change is public information,” a reasonable consumer could not have been misled. The court also cited additional independent reasons for dismissal of these product greenwashing claims: (1) that the alleged greenwashing statements were taken out of context and (2)  that they constituted “statements of aspiration, opinion, or puffery.” Regarding the City’s claim of “corporate greenwashing,” the court found that the companies’ statements regarding their investments in clean and alternative energy sources were not actionable under the Consumer Protection Law because they were not alleged to be “made in connection with the sale” of a consumer good. The court also held that allegations of violations based on statements made more than three years before City filed its complaint (i.e., statements made before April 22, 2018) were time-barred under New York law and pursuant to a July 2024 stipulation by the parties. The court rejected the companies’ arguments that they were not subject to the court’s jurisdiction, finding that the companies’ contacts with and activities in New York City were “purposeful” and “substantially related to the underlying claims of deceptive practices in NYC.”  The court also declined to dismiss the City’s claims under New York State’s anti-SLAPP (Strategic Litigation Against Public Participation) law, citing its earlier decision denying American Petroleum Institute’s anti-SLAPP motion to dismiss. The court did not address the defendants’ First Amendment arguments.

Lawsuit against oil and gas companies and trade group alleging they systematically and intentionally misled consumers about their products' role in causing climate change.

City of New York v. Exxon Mobil Corp.

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New York Trial Court Said New York City Failed to State Greenwashing Claims Against Fossil Fuel Companies

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A tax advantage is a fiscal incentive where the government reduces or exempts selected activities, goods or actors from taxes.

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

Either money or something of monetary value is transferred between two or more organisations, people or countries.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

A potent, short-lived greehouse gas, largely released from livestock, fossil fuel extraction and waste management.

Replacing technologies that burn fossil fuels directly with alternatives powered by electricity.

Actions to reduce emissions in energy generation and supply.

Technologies that capture and hold energy in reserve for later use.

Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

Production of electricity and heat from solar irradiation.

Kinetic energy of airflow transformed into useful energy, mostly electrical energy.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

The activities of industries that transforms raw materials into finished goods through industrial processes.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector involves activities to move goods and people, alongside the storage of products.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

New York Trial Court Said New York City Failed to State Greenwashing Claims Against Fossil Fuel Companies

Target

Policy instrument

Risk

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Finance