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Vermont's consumer protection lawsuit alleging fossil fuel company greenwashing moves forward

A plume of exhaust comes out of a black car's exhaust pipe.
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A major consumer protection lawsuit alleging some of the largest fossil fuel companies in the world mislead Vermont consumers will move forward, a Vermont judge has ruled.

A lawsuit Vermont filed in 2021 against some of the largest fossil fuel companies in the world will move forward after a judge this month rejected an attempt to have it dismissed.

Filed by former Vermont Attorney General T.J. Donovan, the case alleges the companies violated the state’s Consumer Protection Act by knowingly misleading the public about their products’ role in climate change.

“This is a case … that reflects Vermont's values… which is to allow Vermont consumers who care about the environment to make choices that reflect that value,” said Vermont’s current Attorney General Charity Clark. “And if companies are not being honest about those elements in their product, then Vermonters are deprived of that opportunity.”

Clark said she was very pleased with the court’s decision and looks forward to preparing for trial.

The companies named in the suit — Exxon Mobil Corporation, Shell Oil Company, Citgo and Sunoco among others — attempted to get the case dismissed, raising concerns about statute of limitations, Vermont’s jurisdiction to bring this kind of lawsuit and free speech among other claims.

In a ruling earlier this month, Vermont Superior Court Judge Megan Shafritz disagreed and said Vermont’s case has enough factual standing to move forward.

Vermont Public reached out to ExxonMobil for comment but did not hear back.

The lawsuit has faced hurdles in the past.

It stalled after it was initially filed, as the companies fought to get it tried in federal court — a tactic commonly employed by industry to fight this kind of lawsuit.

Earlier this year, Vermont argued successfully that the case should be heard in state court, which is where it will now proceed.

Scientists broadly agree that burning fossil fuels is the leading cause of global warming, and Vermont’s lawsuit alleges fossil fuel companies’ own internal documents show they were aware of the risk their products posed decades ago.

Vermont is one of a handful of states nationwide that have sued major oil and gas companies for allegedly misleading consumers. Consumer protection is one of several legal avenues states and cities are increasingly using to try to collect damages from fossil fuel companies to help pay for climate adaptation.

Jared Carter, a professor at Vermont Law and Graduate School who studies consumer protection, says Vermont’s law has particularly strong protections for consumers and this suit could be a promising avenue for the state to pursue damages for climate change.

He called this month’s ruling a significant moment in the case.

“It's certainly a win for the attorney general and a loss for the industry,” Carter said. “They're going to have to go through discovery. The state is going to be able to ask them questions… perhaps depose some of these people. So it's a tremendous win, I think, for the state of Vermont.”

Both sides will now begin gathering evidence for a possible trial, though it’s still possible the case could be resolved through another venue and a trial date has not yet been set. Clark says it will likely be several years before the suit is resolved.

Have questions, comments or tips? Send us a message.

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Abagael is Vermont Public's climate and environment reporter, focusing on the energy transition and how the climate crisis is impacting Vermonters — and Vermont’s landscape.

Abagael joined Vermont Public in 2020. Previously, she was the assistant editor at Vermont Sports and Vermont Ski + Ride magazines. She covered dairy and agriculture for The Addison Independent and got her start covering land use, water and the Los Angeles Aqueduct for The Sheet: News, Views & Culture of the Eastern Sierra in Mammoth Lakes, Ca.

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