The Australian Competition and Consumer Commission (ACCC) has initiated Federal Court proceedings against Mobil Oil Australia Pty Ltd, a subsidiary of Exxon Mobil, alleging misleading and deceptive conduct. The case concerns the display of Mobil ‘Synergy’ branding at six independently owned service stations in North and Central Queensland during a period when Synergy-branded fuel was not supplied to these sites.
According to the ACCC, these service stations continued to use Synergy branding on bowsers and other materials, suggesting to consumers that the fuel contained specific performance-enhancing additives, which were not present in the supplied fuel. This, the ACCC claims, misled consumers about the quality and benefits of the fuel being sold.
“The ACCC is focused on ensuring that consumers can rely on the accuracy of representations made by businesses. Misleading claims about the quality or performance of a product can have a significant impact on consumer trust,” said ACCC Chair Gina Cass-Gottlieb.
The ACCC is seeking penalties, declarations, injunctions, and compliance orders to address this alleged conduct.
Exxon Mobil responds to the ACCC allegations
In response, Mobil Oil Australia released a statement acknowledging the ACCC’s decision to proceed with legal action and expressed regret over the matter. Mobil clarified that the issue involved six service stations—representing less than 1% of its branded network—located in remote areas of Far North Queensland.
Mobil attributed the situation to operational challenges, including delays caused by the COVID-19 pandemic and associated supply chain issues. Once aware that Synergy fuel could not be supplied to the affected sites, Mobil stated that it took steps to remove or cover up specific benefit claims on fuel bowsers.
The company emphasized that the fuel supplied to these locations met all Australian fuel quality standards, and at no point did the issue relate to the quality of the fuel itself, but rather to claims about additisation.
Mobil also reiterated its commitment to supplying quality fuel to Australians and assured customers that Synergy-branded fuel continues to be available at all properly supplied and branded sites. The company confirmed it has cooperated fully with the ACCC and has implemented measures to prevent similar incidents in the future.
Case highlights the critical importance of accurate product marketing
The case, which is yet to be heard in the Federal Court, highlights the importance of Fuel Retails ensuring that they are marketing all fuel products correctly at each and every site under their control. Not only is this required by law under the relevant provisions of the Australian Competition and Consumer Act (2010), it is essential to maintain consumer trust in the Australian Fuel Retail Industry in general.
ACAPMA
