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November 2nd, 2010
Online Retailers Settle FTC Charges of Appliance Labeling Rule Violations
In an enforcement action that highlights the recent focus by the Federal Trade Commission ("FTC") on environmental and energy marketing issues, the FTC announced yesterday settlements with three online retailers arising out of their allegations that their the websites violated the FTC's Appliance Labeling Rule. The FTC alleged that the retailers failed to post "EnergyGuide" information for appliances offered for sale. The Appliance Labeling Rule requires manufacturers and retailers of most major home appliances, including dishwashers, refrigerators, air conditioners, furnaces, and washing machines, to inform consumers about the product’s energy consumption and efficiency. The requisite yellow-and-black EnergyGuide label identifies for consumers: the key features of the appliance, the estimated annual cost of operation, the estimated annual electricity use, and the cost range of other appliance models with similar features.
These settlements mark the first cases in which the FTC has sought civil penalties against online retailers for Appliance Labeling Rule violations. The Director of the FTC’s Bureau of Consumer Protection, David Vladeck, emphasized the Appliance Labeling Rule’s important role in helping shoppers “make smart buying decisions that take into account energy use” and stressed the Rule's applicability to retail websites: "Companies selling appliances covered by the FTC's rules, either online or in stores, have an obligation to provide EnergyGuide labels."
The enforcement actions also serve as a reminder of the FTC’s recent focus on ensuring that any messages about a product’s environmental or energy benefits are useful and not misleading to consumers; these settlements come on the heels of the FTC’s recent announcement of proposed revisions to its Guides for the Use of Environmental Marketing Claims (the "Green Guides"), as well as its decision to extend the Appliance Labeling Rule to televisions starting in 2011.
Read full press release - "FTC Fines Online Retailers for Failing to Post EnergyGuide Information for Appliances".
If you have any questions about the recent actions, the FTC guidelines or other advertising/marketing law issues, please contact Jeffrey A. Greenbaum at jgreebaum@fkks.com or (212) 826 5525 or any other member of the Frankfurt Kurnit Advertising Group.
Disclaimer. This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.
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“Made in the U.S.A.” Claims Continue to be Scrutinized
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June 4 2018
