SoCalGas fined $175k for misleading consumers about renewable natural gas.
Southern California Gas Company to Pay $175,000 in Penalties for Misleading Consumers
Southern California Gas Company (SoCalGas) has been ordered to pay $175,000 in penalties for misleading consumers about the environmental attributes of natural gas, according to an announcement made by California Attorney General Rob Bonta on Aug. 14.
The settlement comes in response to “numerous unqualified environmental marketing claims” made by SoCalGas in 2019, where they falsely labeled natural gas as “renewable,” as stated in a press release.
It is important to note that the majority of natural gas, including the gas distributed by SoCalGas, is derived from fossil fuels and is not renewable, as confirmed by the attorney general’s office.
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SoCalGas spokesperson, Chris Gilbride, expressed the company’s satisfaction in resolving the matter cooperatively. He emphasized SoCalGas’ commitment to delivering increasingly renewable natural gas and other clean fuels to customers, as part of their goal to achieve net zero greenhouse gas emissions by 2045.
The attorney general’s office conducted an investigation and found that SoCalGas made these misleading claims through various mediums, including print, electronic media, informative displays, backdrops, and promotional items.
Attorney General Bonta stated, “While we appreciate its cooperation in our investigation, SoCalGas should have known better than to broadcast unqualified claims suggesting that all natural gas is ‘renewable.’ Truth in marketing matters, and it’s required under state law.”
The settlement not only includes the $175,000 penalty but also prohibits SoCalGas from making similar unqualified statements in the future. Additionally, 50 percent of the penalty, amounting to $87,500, will be directed to the California Environmental Protection Agency’s Environmental Justice Small Grants Program to fund a Supplemental Environmental Project focused on environmental justice. SoCalGas is also required to publish a corrective statement on its website within 14 days of the settlement.
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