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Wednesday, January 15, 2020

Eni to Appeal Italian Fine For Diesel Ads - Wall Street Journal

The logo of Italian energy company Eni is seen at a gas station in Rome. The oil-and-gas company said it would appeal the Italian antitrust authority’s decision to fine the company for misleading consumers. Photo: max rossi/Reuters

ENI SpA said Wednesday that it would appeal the Italian antitrust authority’s decision to fine the company for misleading consumers in what environmental groups called a historic ruling.

“Eni has learned with great surprise the Italian competition authority’s decision,” the oil-and-gas major said, adding that “the company reserves the right to assess the grounds for its appeal to the Regional Administrative Court of Lazio.”

The competition authority fined Eni €5 million ($5.6 million) for allegedly claiming in an advertisement campaign its Diesel+ fuel significantly contributes to reducing greenhouse emissions. Eni has halted the campaign and said it won’t use the word “green” in relation to automotive fuels, according to the Italian authority.

Environmental groups in Italy welcomed the decision and called on the government to end subsidies for products that they claim directly or indirectly contribute to climate change. The ruling highlights an ongoing debate in Europe on whether biodiesel should be considered a green fuel.

“Today’s authority decision represents the first important sanction for ‘greenwashing’ over misleading advertising messages about how green a product really is,” said Francesco Luongo, president of consumer association Movimento Difesa del Cittadino.

According to the Italian watchdog, Eni’s alleged deception arose primarily because the company characterized as “green” a biodiesel component of the advertised EniDiesel+ product, attributing environmental benefits to the product as a whole.

Environmental association Legambiente also welcomed the ruling, saying the Italian government should focus more on sustainable energy sources.

Write to Giulia Petroni at giulia.petroni@wsj.com

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Eni to Appeal Italian Fine For Diesel Ads - Wall Street Journal
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