Another Climate Lawsuit Dies: Court Says No One Was Fooled By Cleaner-Gas Ads

A New York appeals court handed three of America’s biggest oil companies another legal victory Thursday, rejecting New York City’s attempt to hold them liable for allegedly misleading consumers about the environmental benefits of fossil fuels.

The New York Supreme Court’s Appellate Division, First Department, unanimously upheld the dismissal of a lawsuit accusing ExxonMobil, Shell and BP of deceptive advertising. The Thursday ruling marks another setback in a yearslong legal battle over whether energy companies can be held responsible for their environmental marketing claims.

“While the reasonable consumer standard appears to be better supported in current law than the more subjective standard urged by the City, we need not resolve this issue to decide this appeal,” read the appellate opinion.”Under either standard, the City’s claim that defendants engaged in product greenwashing cannot stand.”

“The City cannot have it both ways,” the lower court ruled in January 2025, according to Thursday’s appellate decision. The court had found that New York could not argue consumers already understood the connection between fossil fuels and climate change while simultaneously claiming they were deceived because oil companies failed to disclose that connection.

The lawsuit, originally filed in April 2021 under former Democratic Mayor Bill de Blasio, accused the companies of “greenwashing,” a practice in which businesses allegedly exaggerate their environmental credentials to appeal to climate-conscious customers.

New York City argued that advertisements for ExxonMobil’s Synergy fuels, Shell’s V-Power Nitro+ gasoline and BP’s Invigorate fuel additive misled consumers by promoting cleaner-burning products without emphasizing that gasoline still produces greenhouse gas emissions.

ExxonMobil and BP each did not immediately respond to the Daily Caller News Foundation’s requests for comment. Shell did not provide a comment on the record by time of publication.

The appellate judges rejected that argument, finding that the companies advertised potential improvements over conventional gasoline rather than promising that their products would eliminate emissions altogether.

The court also rejected the city’s claims that the companies exaggerated their investments in renewable energy. The judges found that statements promoting clean energy initiatives were not sufficiently connected to the sale of consumer goods or services to violate the city’s Consumer Protection Law.