New York Courts Shut Down Consumer Protection Claims Regarding Greenwashing
The amount of climate-related litigation has tripled in the past decade and includes greenwashing claims against some of the largest fossil fuel companies in the world. New York state and its localities have brought some of these lawsuits, but already in 2025, two have been dismissed.
On January 14, 2025, the New York Supreme Court dismissed a lawsuit brought against large fossil fuel companies for allegedly participating in deceptive trade practices under New York's Consumer Protection Law ("CPL"). City of New York v. Exxon Mobil Corp., No. 451071/2021 (N.Y. Sup. Ct. Jan. 14, 2025). The City's complaint was filed after another case was dismissed alleging state tort law claims, including public and private nuisance, against several fossil fuel companies. City of New York v. BP P.L.C., 325 F. Supp. 3d 466 (S.D.N.Y. 2018). In the instant case, New York City argued the CPL was violated because defendants had misled consumers with greenwashing campaigns connected to their fossil fuel products and commitment against climate change.
In dismissing the case entirely, the court explained why two types of greenwashing were not present:
- Product Greenwashing: New York City identified products advertised by each defendant and argued the products misled consumers because defendants touted the climate benefits of the products but failed to include statements about the products' contribution to climate change.
The court dismissed these claims because the city acknowledged consumers' existing awareness of the argument that fossil fuels cause climate change. As a result, the defendants were not misleading consumers by withholding public knowledge. The court also found defendants' statements, such as "better than ordinary fuels" or "take you further," to be aspirational or opinion-based statements that would not mislead a reasonable consumer.
- Corporate Greenwashing: New York City alleged defendants exaggerated their investment in clean energy and misrepresented the benefits of defendants' "alternative energy sources." Under New York's CPL, the statements made "must be in connection with the sale" of a consumer good. The court found that the city failed to show defendants' sold the alleged alternative fuels or technologies to New York City consumers. The court rejected the City's argument that the cumulative effect of all the allegedly misleading statements persuaded consumers to purchase defendants' products.
Similarly, on January 10, 2025, New York State's case against JBS, the world's largest meatpacker, was also dismissed. State of New York v. JBS USA Food Company and JBS USA Food Company Holdings, No. 450682/2024 (N.Y. Sup. Ct. Jan. 10, 2025). However, the state may refile its complaint within 90 days. The case provides insight into how New York courts, among others, approach consumer protection suits related to greenwashing. The judge favored JBS's argument that aspirational language, such as "an ambition to achieve," is unlikely to mislead consumers, whereas a promise to achieve a specific result without taking any steps to accomplish the result is more likely to mislead consumers.
While the city filed a notice of appeal on February 13, 2025, in Exxon and the state has another opportunity to file its suit against JBS, the New York court system appears to be a difficult place to seek redress for climate-based statements.
