Southern California Gas Co. has agreed to pay $175,000 in penalties for deceptive marketing practices related to the environmental benefits of natural gas, according to an announcement made by California Attorney General Rob Bonta. The settlement comes as a result of the utility’s misleading claims in 2019, where they falsely labeled natural gas as “renewable.” The Attorney General’s office clarified that the majority of natural gas, including the gas distributed by SoCalGas, is derived from fossil fuels and is not renewable.
Chris Gilbride, spokesperson for SoCalGas, expressed satisfaction with the resolution of the matter and reaffirmed the company’s commitment to delivering renewable natural gas and clean fuels to customers. He emphasized that SoCalGas aims to achieve net-zero greenhouse gas emissions in its operations and energy delivery by 2045.
An investigation conducted by the Attorney General’s office revealed that SoCalGas made these misleading claims across various platforms, including print, electronic media, informative displays, backdrops, and promotional materials.
Attorney General Bonta commended SoCalGas for its cooperation in the investigation but noted that the company should have been aware of the importance of truthful marketing practices. He asserted that truth in marketing is a legal requirement in California, and today’s settlement serves as a clear message that the Department of Justice is committed to holding corporations accountable for misleading consumers about environmental attributes.
The settlement, which resolves allegations of consumer protection law violations, includes several provisions for SoCalGas:
- They are prohibited from making similar unqualified claims about natural gas being “renewable.”
- They must pay $175,000 in penalties, with 50% ($87,500) being allocated to the California Environmental Protection Agency’s Environmental Justice Small Grants Program, focusing on environmental justice.
- They are required to publish a corrective statement on their website within 14 days of the settlement taking effect.
A final judgment on the case is scheduled for October 19th in the Superior Court in Oakland.
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