Slater and Gordon Filed Class Action Against AGL
The legal action alleges AGL misled customers about the environmental impact of carbon neutral energy products.
Updated on Oct. 14, 2026 in Utilities
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Slater and Gordon Lawyers has filed a class action against AGL in the Federal Court. The lawsuit claims the energy company misled households and small businesses regarding the effectiveness of its carbon neutral products.
Why it matters
Customers paid a premium for these products to offset their energy emissions, but the claim alleges the carbon credits failed to deliver the promised environmental results.
Customers have paid a premium of approximately $1.50 per week for carbon neutral energy products since July 2020. The ongoing litigation remains in the Federal Court to determine the validity of the claims.
The players
Slater and Gordon Lawyers
This major Australian law firm represents the plaintiffs in the class action lawsuit against AGL.
AGL
AGL is a prominent Australian energy provider currently facing allegations regarding the marketing of its carbon neutral products.
Federal Court
This is the judicial venue where the legal proceedings against AGL are currently being litigated.
The details
The class action alleges that the carbon credits purchased by AGL to support its carbon neutral branding did not provide the promised environmental outcomes for consumers. Slater and Gordon is seeking both financial compensation for affected customers and a formal injunction to halt AGL's current marketing conduct regarding these products.
Timeline
AGL began selling carbon neutral products in July 2020.
A related case involving EnergyAustralia carbon offset claims occurred in May 2025.
The class action was filed on 14 October 2026.
Market Landscape
The lawsuit against AGL reflects a growing focus on corporate accountability as the Australian government moves to scrap the Climate Active programme. This shift challenges how utility companies position their environmental credentials in a competitive energy market.
Customers who purchased carbon neutral products may be entitled to compensation if the lawsuit succeeds. The case also signals potential changes in how energy providers label and price environmentally-focused services for households.
The takeaway
Consumers should carefully review environmental claims attached to utility bills to ensure they understand the value of the products they purchase. This case underscores the importance of transparency in corporate sustainability marketing.
Further reading
For more context on the industry, visit Australia Utilities.
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Do you trust the environmental claims companies make about the products you buy?
