Three Spanish Organisations Filed Complaint for Misleading Advertising

Madrid, May 07 (CECU/OurVoice) - The organisations Ecologists in Action, Federation of Consumers and Users CECU and Greenpeace Spain have filed complaints for misleading environmental statements against the oil company Repsol before the National Commission of Markets and Competition (CNMC) and before the General Directorate of Consumer Affairs.
The three complainant organisations have carried out an investigation, during 2022 and 2023, focused on the impact of the Repsol’s activity on deforestation in Indonesia and its contribution to the increase in emissions responsible for climate change. Spain is the main importer of palm oil from Indonesia and the largest producer of biofuels within the European Union. In Spain, 72.5% of biodiesel and almost 100% of hydro biodiesel is made with palm oil. Repsol is one of the main importers of palm oil and producer of palm oil-based biofuels.
Based on expert reports, the complaining organisations conclude that the Repsol company hides in its public communication and advertising the deforestation and other environmental and social impacts caused by the production of palm oil used by Repsol to make biofuels. The palm oil Repsol uses is not sustainable and does not reduce greenhouse gas emissions compared to conventional fossil fuel, contributing to global warming and causing deforestation and loss of biodiversity.
The legal action focuses on the claims that Repsol makes about its “biofuels,” which describes in its public communications as “sustainable”, “eco-fuels”, “carbon neutral”, “with a low carbon footprint” or “renewable”, in a general and equivocal manner, without distinguishing between the different products offered and without specifying their attributes or environmental impact, which is misleading for the public. Repsol's marketing and advertising strategy is riddled with partial information, vagueness, concealment of relevant information or directly misleading environmental claims, and leads the public to confusion. 
“Repsol cannot claim that biofuels made from palm oil reduce greenhouse gas emissions. If we take into account the deforestation caused by the expansion of palm oil crops, the consumption of biodiesel made from this material emits three times more polluting gases than fossil fuels, and thus aggravates global warming”, said Josep Hurtado, Ecologists in Action spokesperson.
In order to defend the interests of consumers and the environment, the organisations have filed the complaints against Repsol before the regulatory bodies responsible for protecting consumers’ rights and competition rights. The complainants allege that Repsol is in breach of the General Consumer Law, the General Law on Advertising , the Competition Law and the Law on Unfair Competition, as well as European legislation.
"Repsol's misinformation about its supposed 'bio' fuels leaves consumers in a helpless situation", stated David Sánchez, director of CECU.“These misleading environmental statements not only confuse consumers and investors but they spread false narratives that contribute to a culture of misinformation about the fight against climate change and true corporate commitment.”
In their complaint, the organisations question the methodology used by the oil company to calculate its carbon footprint and, therefore, its commitment to achieve net zero emissions by 2050. One of the key elements of Repsol’s decarbonization strategy is the production and sale of “sustainable”, “eco”, “carbon neutral”, “low carbon” or “renewable” fuels, including those made from palm oil, which the company considers to be “non-polluting” or “less polluting”.
In their complaint, the organisations question the company’s stated emissions reduction and deny that Repsol is really committed to decarbonizing its business and on track to achieve net zero  emissions by 2050. 
“Not only do Repsol deceive with their false biofuels. If we pay attention to their data, only 0.8% of Repsol's energy production in 2022 had a supposedly 'renewable' origin. The rest, more than 99% corresponds to oil and gas production. This commitment to fossil fuels is incompatible with the objectives of the Paris Agreement, with the recommendations of the IPCC and the latest commitments reached at COP 28 in Dubai.”, declared Miguel Ángel Soto, spokesperson for Greenpeace Spain. “The route to Repsol's decarbonization does not exist, it is a fallacy, a great greenwashing operation", he added.
Thus, based on the expert reports and analysis of relevant legislation, the organisations conclude:
•    Repsol's environmental statements about its biofuels made from palm oil are not true, cannot be verified and, as they are vague and general, are misleading.
•    Repsol’s statements give consumers the impression that its products or activity has no environmental impact or, worse still, has a positive impact on the environment.
•    Repsol's behaviour regarding palm oil-based biofuel infringe upon consumers rights and constitutes an act of unfair competition.
•    By not taking into account its emissions from deforestation linked to palm oil production and its continued investment in fossil fuels, Repsol's carbon footprint calculation is flawed and, therefore, its decarbonization plan is deceptive. 
The organisations seek that Repsol´s infringements be duly sanctioned; demand the accessory liability of its legal representatives and company directors involved in the infringement, as well as the imposition of other legally appropriate sanctions. Finally, they request that the sanction be publicised and that Repsol rectify publicly. 
As one of the largest greenhouse emissions emitters in the world, and one of the major oil and gas companies, Repsol´s lack of real commitment to climate transition has had and will have a decisive impact on the climate in the coming years. In this respect, the complainants recall the need for Repsol to comply with the Paris Agreement and the words of the UN Secretary General: “We cannot afford delays, false promises or any form of greenwashing. We must have zero tolerance for net-zero greenwashing”.