Watchdog reprimands two energy companies for misleading sustainability claims

Energy suppliers Greenchoice and Vattenfall misled consumers with their claims about sustainability, the Netherlands Authority for Consumers & Markets (ACM) announced.

According to the regulator, the companies profiled themselves as “sustainable” using vague comparisons. “However, it was unclear on what basis they made the comparison and with whom or what they were comparing themselves. Consumers who want to make sustainable choices must be able to trust the claims that companies put on their websites are correct,” the ACM said.

The companies acknowledged that they misinformed consumers. They also said they would adjust various sustainability claims and how they substantiate those statements. Greenchoice will no longer use statements like “greenest energy movement in Netherlands” and “largest purchaser of solar energy.” The company added, “At least not without further substantiation.”

Greenchoice and Vattenfall will also donate 950,000 euros and 450,000 euros, respectively, to various sustainable causes to compensate for being vague.

Because the companies promised immediate improvement, the ACM did not slap them with a fine.

Last month, the ACM reprimanded fashion chain H&M and sports chain Decathlon for similar reasons. The companies also promised to better substantiate their claims and donate to sustainable causes as compensation. Here too, the ACM decided against imposing fines.