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Regional Court of Konstanz’s decision on climate neutral claims regarding heating oil - judgment

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The Centre for Protection against Unfair Competition sued a fossil and oil dealer in relation to an advertising on ‘climate neutral premium heating oil’, arguing that it posed a misleading commercial practice, and additionally, that it was misleading by omission.

The Regional Court of Constance denied that the claim was misleading pursuant to § 5 para. 1 of the Act against Unfair Competition because the plaintiff had not sufficiently substantiated the misleading nature of the claim. However, the Court upheld the action on the grounds of a violation of §5a para. 2 because the plaintiff had omitted essential information.

The Regional Court held that the plaintiff omitted essential information by not connecting the statements in the advertising with information on how the advertised climate neutrality of the heating oil was achieved. It reiterated the strict standard applicable to environment-related advertising claims. The court emphasised that it was essential for the defendant's customers to know if climate neutrality was achieved through energy reductions in their own operations, the partial use of renewable energies or the acquisition of certificates. The Regional Court highlighted that reductions would be considered as more important than the mere acquisition of certificates due to the company’s significantly higher efforts and increased sustainability. In order to make an informed business decision, the customer needed information on how climate neutrality was achieved. The Regional Court also assumed that customers would be willing to pay more if climate neutrality was achieved by reducing emissions instead of merely offsetting them. In this case, however, the customers did not receive this information immediately, but only when they asked for it on the telephone. This was not sufficient, because the information would have been necessary when the business decision was made.

Regional Court of Konstanz’s decision on climate neutral claims regarding heating oil

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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.

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

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

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

Electrical energy generated from mechanical devices driven by flowing fresh water.

Production of electricity and heat from solar irradiation.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

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.

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

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

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.

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

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.

Regional Court of Konstanz’s decision on climate neutral claims regarding heating oil - judgment

Policy instrument

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Finance