AGs warn banks of antitrust breaches due to climate activism.
State Attorneys General Warn Financial Services Companies of Potential Violations
Twenty-two state attorneys general, led by Tennessee’s Johnathan Skrmetti, are raising concerns about financial services companies potentially violating antitrust and consumer protection laws. Their focus is on these companies’ participation in a climate activist alliance aimed at achieving net zero carbon emissions.
The attorneys general have sent a letter to financial services providers who are signatories to the Net Zero Financial Service Providers Alliance (NZFSPA). The NZFSPA is described as “a global group of Service Providers committed to supporting the goal of global net zero greenhouse gas emissions by 2050 or sooner.”
Concerns Raised by Attorneys General
The attorneys general express concern that the NZFSPA commitments may violate state and federal laws, including antitrust and consumer protection laws. They point out that despite being competitors, the signatories commit to using their market influence to enforce their collective climate agenda in the broader economy.
Furthermore, the attorneys general highlight the potential impact of the alliance on companies that may feel compelled to comply with the NZFSPA’s policy preferences, limiting the variety and output of goods and services that do not align with the activist climate agenda.
The alliance includes influential companies such as Deloitte, EY, Bloomberg, KPMG, and S&P Global.
Problematic Aspects of the Alliance
The attorneys general point out problematic aspects of the alliance, including signatories coordinating their agenda with other climate-activist pressure groups and using their market pressure to achieve the NZFSPA’s goals.
The attorneys general request detailed information on communications related to the signatories’ commitments to the NZFSPA and their membership in GFANZ. They also ask for descriptions of actions taken to fulfill NZFSPA obligations and any deviations from those commitments. The deadline for providing this information is October 13th.
Tennessee Attorney General Johnathan Skrmetti explains, “If financial service providers are colluding to limit consumer choices and manipulate market outcomes in support of international climate activists, that could violate our antitrust and consumer protection laws. Decisions about energy policy should be made by our elected representatives, not by transnational corporate alliances.”
Will Hild, Executive Director of Consumer’s Research, commends the attorneys general for their efforts in defending consumers against this alleged net zero conspiracy.
Call for Cooperation and Accountability
Hild emphasizes that financial services providers should understand that collusion to drive up costs for Americans, regardless of any virtue signaling, is both immoral and illegal. He urges them to cooperate with the investigation and, most importantly, to stop conspiring against the public. Hild points out the potential massive liabilities associated with the alliance and asserts that no financial service provider has a legitimate reason to be part of the NZFSPA.
This letter follows the departure of several insurance companies from the alliance after a previous warning from 23 attorneys general about potential legal consequences.
How do the attorneys general emphasize the need for financial services companies to balance climate goals with fair competition and consumer rights in the marketplace
Lobal, among others. These companies are major players in the financial services industry and have considerable market influence. The attorneys general question whether their participation in the NZFSPA could potentially lead to anti-competitive behavior, restricting competition and consumer choices.
Antitrust laws are in place to prevent monopolistic practices and promote fair competition in the market. The attorneys general assert that the NZFSPA’s commitments, particularly the use of market influence to enforce their climate agenda, may infringe upon these laws. By colluding to advance a specific agenda, the signatories could undermine fair competition and potentially harm consumers.
Consumer protection laws are designed to safeguard consumers from unfair and deceptive practices. The attorneys general raise concerns that the NZFSPA’s policy preferences could limit the availability of goods and services that do not align with the alliance’s climate agenda. This could restrict consumer choice and potentially harm businesses that do not prioritize climate-related initiatives.
The attorneys general emphasize the importance of balancing climate goals and competition in the marketplace. They recognize the significance of addressing climate change and reducing carbon emissions, but they also advocate for a transparent and fair approach that respects the principles of competition and consumer choice.
The letter serves as a warning to financial services companies regarding the potential legal implications of their involvement in the NZFSPA. It calls for a thorough evaluation of the alliance’s commitments to ensure compliance with antitrust and consumer protection laws. The attorneys general urge these companies to consider the broader economic impact of their actions and to align their practices with fair competition and consumer rights.
In conclusion, the attorneys general’s letter highlights concerns about potential antitrust and consumer protection violations by financial services companies participating in the NZFSPA. This formal warning serves as a reminder of the importance of adhering to legal and ethical standards in pursuing climate-related initiatives. Balancing the fight against climate change with fair competition and consumer rights is essential for an equitable and sustainable economy.
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