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Mobil Oil Australia Fined $16 Million for Misleading Fuel Additive Claims

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Mobil Fined $16 Million by Federal Court for Misleading Fuel Claims

The Federal Court of Australia has imposed a $16 million fine on Mobil Oil Australia for selling fuel under false pretenses regarding engine protection benefits. The ruling confirms breaches of Australian consumer law and endorses a settlement reached between the parties.

Mobil Oil Australia was found to have breached Australian consumer law by making false or misleading claims about its fuel.

ACCC Initiates Legal Action

The Australian Competition and Consumer Commission (ACCC) initiated legal action against Mobil in December 2024, alleging the company made false or misleading claims about its fuel at petrol stations in Queensland.

Between August 2020 and July 2024, Mobil displayed signs and posters advertising fuel as "Mobil Synergy" at nine independently owned and operated petrol stations across central and north Queensland, including locations such as Townsville, Mackay, and Rockhampton.

The ACCC stated that the fuel sold at these sites did not contain the advertised additives that would provide additional benefits compared to regular petrol.

Deceptive Marketing Claims

Mobil had advertised the "Synergy" fuel as containing additives that could provide several benefits:

  • Protect engines against corrosion
  • Reduce emissions
  • Improve fuel economy
  • Enhance engine performance

ACCC Deputy Chair Mick Keogh confirmed that the fuel on sale was standard petrol and lacked any of the claimed additives.

Industry Message and Company Apology

Mr. Keogh emphasized that Mobil did not exercise sufficient care, deeming the $16 million penalty appropriate. He added that the ruling sends a crucial message to the industry regarding the importance of honest and non-misleading claims about products.

A Mobil spokesperson issued an apology to affected customers, expressing regret for the conduct. The company stated that the involved sites represent only a small portion of its Australian network.

Mobil attributed the misleading sales to operational difficulties, supply chain issues, and the remote location of the sites. The spokesperson clarified that the conduct pertained only to claims of additisation and that the supplied fuel consistently met Australian fuel quality specifications.