I dobbed the LPG Association in to the Commerce Commission

By Andy Kenworthy

7 comments

Posted on April 28, 2010. Listed in:

See other articles written by Andy »

Green police light

A while back I complained to the Commerce Commission about the LPG Association website for claiming 'green' credentials I did not feel it had. Yes, LPG folks, if you are reading this, it was me. 

I received a response yesterday, and it looks like their senior investigator agreed. Whether you do or not, it’s good to know the process is working. Read on to find out what happened. Check out the Commerce Commission’s guidelines on green marketing, and soon you too could be calling companies to account for their claims, at the mere writing of an email.

Alternatively, if spot any potential breaches, let me know, and I’ll try to set the CC’s dogs on ‘em.  

Here’s my original complaint:

I wish to complain that the following website is misleading, especially in the use of the term 'green' to denote environmental credentials: http://www.lpga.co.nz/infoTech.php

It is a fact that LPG is a fossil fuel that contributes significantly to climate change. To claim 'Climate Change Benefits' is therefore misleading. 

There is a false comparison here in comparing LPG to other fossil fuels. 

The statement: “It is also preferred in the residential, commercial and industrial sectors, particularly for heating, because it offers climate change advantages over most other energy sources.” Is unsubstantiated, and I believe, untrue. It completely avoids mentioning New Zealand's national grid, which is about 70% renewable energy, or the use of modern wood burners, etc. 

At the very least, I feel this website breaches Commerce Commission guidelines. I wonder if you could consider it for investigation?

Sinead Sinnot, senior investigator at the Commerce Commission, replied:

I have investigated your complaint relating to representations made by the LPG Association (LPGA) on its website.

I spoke to a representative of the LPGA about the representations made on its website.  I subsequently sent a compliance advice letter to the LPGA advising it of its obligations under the Fair Trading Act 1986 and the relevant provisions relating to false and misleading representations that goods or services are of a particular kind, standard or quality.  The Commission considers that environmental claims should be clearly and accurately explained and should not include unqualified or general statements.

The LPGA has stated that it will be reviewing the content of its website in order to provide more detail about the environmental benefits of LPG and an explanation of what it is being compared to.    

The Commission does not intend to take any further action other than the issuing of the compliance advice, but may monitor the content of the LPGA website with a view to reassessing our position should we receive further complaints.  I can advise you that the fact that the Commission is not taking any further action does not prevent any individual from taking their own action under the Act.

I would like to thank you for bringing this matter to the Commission's attention.  

7 comments

If you see any unhelpful comments, please let us know immediately.

See also http://www.celsias.co.nz/project/green-washing-how-to-avoid-it/

And Consumer.org (http://tinyurl.com/259kuhd)

There's a fine of up to $200,000 for breaches of the guidelines, so there's Big Money to play for in this game folks!

Written in April 2010

Kath D. 110°

Just checked the status of this one before teaching my green marketing class this week and notice no change to the LPGA website - how long does it take?! - time for another complaint, Andy?

Written in July 2010

I think the key phrases here are: "may monitor the content of the LPGA website with a view to reassessing our position should we receive FURTHER complaints." (My emphasis)

and:

"the fact that the Commission is not taking any further action does not prevent any individual from taking their own action under the Act."

To me the first says: "Go for it Kath" and the second one says "are we ready to bring out the lawyers?"

Written in July 2010

John Miele 140°

Andy:

Just trying to add another perspective onto their claims from one industry sector, so don't necessarily barbeque me...

In shipping, LPG powered vessels produce substantially less CO2 emissions than other fossil fuels (HFO, MDO, and LS are the most commonly used. Their factors are correct from an engineering standpoint). As alternative fuels continue in development for shipping, as yet, LPG is the cleanest fuel that currently can be used on large ships (Like tankers or container ships). Since commercial ships are believed to be one of the largest producers of CO2 emissions in the world, any substantial reduction in CO2 would be beneficial. An LPG-powered vessel used for short sea shipping also can eliminate hundreds of trains or thousands of trucks. So, I say, at least in the area of marine transport, their claims aren't spurious. (I'm not qualified to answer related to other industries.) Of course, as technology continues to develop in maritime (solar, wind, scrubbing, and even nuclear), the situation will change.

I'm no fan of using courts... I've always been a believer that the way to effect change is working with industry using technology, rather than against it. Perhaps the LPGA should be more specific or back up their assumptions with more data... At least then everyone is on the same page. If enough consumers want more information, that sends a more powerful message than any court ruling ever would.

Written in July 2010

Where is the LPGA in all this discussion? I'd like to see one of their people come onto Celsias and explain the statement - or offer to change it.

Written in July 2010

G 10°

Andy, I guess the real issue though is that less bad is not good. I'm not disputing your assertions (you sound way more educated in this field than me) but no company or association should be trying to lay claim to sustainability credentials unless they are really sustainable. Obviously the LPGA couldn't claim that LPG is sustainable and so they shouldn't be using any sort of marketing in that area. End of story. I to have laid a complaint - will see what happens.

Written in July 2010

Good on you G! I think it is vital that clarity is maintained in this area, otherwise the radical change we need - not just a little bit less bad but a whole lot more good - will not happen in time to prevent some serious nastiness. Keep us posted on your progress. Cheers!

Written in July 2010

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