First lawsuit for greenwashing in Spain: Iberdrola accuses Repsol of “misleading advertising”

repsolrenovables

Iberdrola and Repsol face each other today in Santander Commercial Court number 2 in the oral hearing following the lawsuit filed by the electric company against the oil company for “unfair competition” and “misleading advertising.” This will be the first trial between companies for greenwashing in Spain. Iberdrola is asking for some of Repsol’s campaigns to cease, but not for damages.

The trial will take place in the city of Santander since, according to procedural regulations, when companies with different registered offices are sued, the plaintiff, in this case Iberdrola, can choose the location of any of those offices. In this case, the competing company of the electric company in the sale of electricity and gas, Repsol Distribuidora de Electricidad y Gas, has its registered office in Santander, even though the lawsuit was also directed against the oil products subsidiary and the parent company itself, Repsol SA, based in Madrid.

Last February, Iberdrola filed its lawsuit under the Unfair Competition Law, based on the articles regarding acts of deception (art. 5), misleading omissions (art. 7), and illegal advertising (art. 18) within the framework of its advertising campaigns and corporate communications. In the complaint, the electric company accused Repsol of promoting sustainable initiatives, “when its multiproduct offering seeks to encourage the use of fuels,” as well as “focusing on sustainability when it constitutes a minor element of its current activities.

————

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.