Australia’s consumer watchdog has launched proceedings in the Federal Court against a company selling soil carbon and sequestration programs to farmers.

The Australian Competition and Consumer Commission (ACCC) has launched legal proceedings in the Federal Court against Prime Carbon Pty Ltd, a company that signs farmers up to a carbon sequestration and soil carbon program. The ACCC is alleging that Prime Carbon made false or misleading representations about its relationship with the Chicago Environment Registry, the National Environment Registry (NER) and the National Stock Exchange of Australia Limited.

The ACCC believes that Prime Carbon made representations that NER is the sole registry that meets the standards required of carbon credit registries by the government, and that the carbon credits listed on the registry were specifically supervised or regulated by the Australian Government. The company is also alleged to have indicated the NER registry was the place where domestic and international buyers go to source carbon credits, when this was not the case.

The ACCC is also alleging that Prime Carbon’s sole director was involved with the conduct. A directions hearing is set for 23 February 2010; the news release from the ACCC can be viewed here.