Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC amends Energy Labeling Rule, (Dec 31, 2014)

By Linda O’Brien, J.D., LL.M.

The FTC has issued a final rule amending the energy and water use labeling for consumer products under the Energy Policy and Conservation Act (“Energy Labeling Rule”). The amendments, effective April 6, 2015, update the labeling requirements for heating and cooling equipment and removes information from furnace labels regarding regional conservation standards.

Under the Energy Labeling Rule, manufacturers must attach yellow EnergyGuide labels that state an annual operating cost and energy consumption rating and a range for comparing the highest and lowest energy consumption for all similar models. EnergyGuide labels appear on televisions, clothes washers, dishwashers, refrigerators, freezers, water heaters, room air conditioners, central air conditioners, furnaces, boilers, heat pumps, and pool heaters.

The Commission has amended its label requirements for heating and cooling equipment consistent with proposed amendments in a supplemental notice of proposed rulemaking published in June 2014. The amendments update labels for furnaces and boilers to include new range information, provide the link to the Department of Energy website for cost information, and eliminate the capacity disclosure requirement.

The amendments also eliminate information on furnace labels about regional standards and no longer require capacity disclosures for heating and cooling equipment labels. Instead the capacity disclosures are optional for all such equipment, except split-system air conditioners where such disclosures may cause confusion.

Additionally, the final rule does not prohibit the ENERGY STAR logo on the EnergyGuide labels for furnaces. The FTC has permitted the logo on EnergyGuide labels since April 2000 and believes that the combination of the EnergyGuide’s detailed efficiency rating disclosure and the ENERGY STAR logo provides a robust source of energy efficient information to consumers.

More information on EnergyGuide labels can be found at “Shopping for Home Appliances? Use the EnergyGuide Label.”

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