Mobil Oil Australia has been ordered to pay a $16 million penalty after the Federal Court found it misled customers about fuel sold at several Queensland service stations.
The issue centred around advertising displayed at nine independently operated sites across central and north Queensland between 2020 and 2024. Fuel was promoted under the Mobil Synergy branding and marketed as delivering additional engine protection and performance benefits. However, the fuel supplied did not contain the additives associated with those claims.
The Australian Competition and Consumer Commission pursued the matter, arguing that customers were led to believe they were purchasing a premium advertised product when, in fact, the fuel was standard petrol.
The court determined that this conduct breached Australian Consumer Law and approved a $16 million penalty as part of the resolution.
Mobil has acknowledged the issue and apologised, explaining that operational and supply challenges contributed to the situation. The company also noted that the affected sites represented a small portion of its national network and that the fuel met Australian fuel quality standards. The case related specifically to the marketing of additives rather than fuel safety or compliance.
Why This Matters for Independent Operators
For independent service station owners, this case is a strong reminder of how seriously regulators view product claims.
It highlights three important considerations:
1. Marketing accuracy is critical
If signage or pump decals promote specific performance benefits, the product must match those claims. This includes any reference to additives, fuel economy improvements or engine protection.
2. Brand reputation can be impacted quickly
Even where fuel meets technical standards, misaligned marketing can damage customer trust and attract regulatory attention.
3. Independents often compete on trust
In many markets, independents rely heavily on reputation and local relationships. Being transparent about what is sold at the pump protects both compliance and long term loyalty.
The ACCC has made it clear that retailers must ensure advertising accurately reflects the product being supplied. In an industry where margins are tight and competition is strong, maintaining credibility is one of your most valuable assets.
For ServoPro members, this is another example of why clear processes around branding, supply agreements and promotional material are essential. Taking the time to double-check claims today could prevent significant risk tomorrow.
For the latest retailer news and information, check out the ServoPro website or to speak to us about how we can help your business contact us.