Consumer NZ is accusing Z Energy of profiting from misleading sustainability messaging.
The organisation teamed up with the Environmental Law Initiative and Lawyers for Climate Action New Zealand Inc to seek a High Court declaration for Z's breaches of the Fair Trading Act.
Chief executive Jon Duffy says the evidence contradicts Z Energy's climate-focused public messaging.
"We don't think that stacks up, and consumers shouldn't be misled into thinking that their purchase of an inherently damaging product is somehow better at this company over other companies."
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