A Vermont Superior Court denied fossil fuel defendants’ motions to dismiss the State of Vermont’s action alleging that the defendants violated the Vermont Consumer Protection Act (VCPA) by misrepresenting and concealing fossil fuel products’ contributions to climate change. Vermont alleged three categories of deceptive or unfair acts and practices: (1) climate science disinformation campaigns; (2) deceptive marketing of specific products; and (3) greenwashing campaigns. First, the court found that the State demonstrated a prima facie case of personal jurisdiction against each defendant under Vermont law, citing Vermont Supreme Court and U.S. Supreme Court precedent holding that a forum state may assert personal jurisdiction over companies that deliver their products “into the stream of commerce with the expectation that they will be purchased by consumers” in the state. Second, the court rejected the argument that the “alleged decades-old climate science disinformation campaign falls well outside the statute of limitations” because Vermont consumers should have been aware of the link between fossil fuels and climate change by 2003 at the latest. The court agreed with the State that this action was based not on the link between fossil fuels and climate change but rather on the defendants’ alleged deceptive acts. Regarding the defendants’ arguments that the State failed to state a VCPA claim, the court first concluded that the State sufficiently alleged that the deceptive acts took place “in commerce.” The court also found that determinations of whether defendants’ statements were deceptive or constituted “mere commercial puffery” required further factual development. In addition, the court concluded that the State’s alleged misrepresentations and omissions were material for purposes of the motion to dismiss. In addition, the court found that at this stage, the State had adequately alleged an “agency relationship” between the defendants and American Petroleum Institute (API) as well as the defendants’ direct participation in API’s alleged greenwashing campaigns. The court therefore permitted the State to continue to assert the defendants’ derivative liability based on API statements. The court also concluded that the defendants were not entitled to dismissal on either First Amendment or Commerce Clause grounds. In addition, the court rejected the contention that complaint presented a non-justiciable political question. The court also denied Exxon Mobil Corporation’s request that the court strike Vermont’s request for disgorgement of funds acquired or retained as a result of practices found to be unlawful under the VCPA. The court said the request was premature and, moreover, that Exxon was incorrect that such relief was not authorized.

Consumer protection lawsuit brought by the State of Vermont against fossil fuel companies alleging deceptive and unfair business practices in connection with the companies' sale of their products.

Vermont v. Exxon Mobil Corp.

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Vermont Trial Court Denied Motions to Dismiss State’s Consumer Protection Claims Against Fossil Fuel Companies

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Vermont Trial Court Denied Motions to Dismiss State’s Consumer Protection Claims Against Fossil Fuel Companies

Risk

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Finance