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FTC Seeks Input on Proposed EnergyGuide Labeling Rule Updates

By Sheila Millar & Jean-Cyril Walker on July 6, 2022
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In keeping with its 5-year schedule for comparability range updates to the Energy Labeling Rule (Rule), the Federal Trade Commission (FTC) published a Notice of Proposed Rulemaking on May 25, 2022, seeking to revise the Rule to require EnergyGuide labels to update comparability range information on EnergyGuide labels for televisions, refrigerators and freezers, dishwashers, water heaters, room air conditioners (ranges only), clothes washers, furnaces, and pool heaters.

The Rule requires manufacturers to affix EnergyGuide labels to many consumer products and prohibits retailers from removing the labels or making them illegible. EnergyGuide labels must contain three disclosures: a product’s estimated annual energy cost, its energy consumption or energy efficiency rating as determined by Department of Energy (DOE) test procedures, and a comparability range that shows the highest and lowest energy costs or efficiency ratings for all similar models. The FTC periodically updates comparability range and annual energy cost information based on current manufacturer data, pursuant to the Rule. The FTC is now proposing two amendments to the Rule: revising the average energy cost figures based on the national average cost figures published by the DOE and clarifying that manufacturers must use current DOE requirements to determine capacity for room air conditioners.

Manufacturers must display the updated information on product labels 90 days from publication of the final Notice announcing updated ranges for specific products. Manufacturers of room air conditioners will have until October 1, 2022, to give them time to change their packaging to include the updated labels and to coincide with the effective date of EnergyGuide labels for portable air conditioners.

The vote to approve publication of the Notice of Rulemaking in the Federal Register was 3-1. Commissioner Christine S. Wilson dissented, arguing that while the proposed revisions to the Rule are necessary, the Commission “fail(s) to take the opportunity to revisit the Rule’s highly prescriptive requirements,” including the detailed label requirements illustrated in the Notice.

Comments are due by July 11, 2022.

Photo of Sheila Millar Sheila Millar

Sheila A. Millar is a partner at Keller and Heckman LLP, where she represents businesses and trade associations on a variety of public policy and regulatory issues, including privacy, data security, cybersecurity and advertising matters, as well as product safety issues. She has…

Sheila A. Millar is a partner at Keller and Heckman LLP, where she represents businesses and trade associations on a variety of public policy and regulatory issues, including privacy, data security, cybersecurity and advertising matters, as well as product safety issues. She has been involved in a variety of audit and compliance projects, including, among other issues, privacy and data security audits, and is experienced in providing crisis management legal support to a variety of national and international companies and associations.

Ms. Millar is a frequent speaker on regulatory and public policy matters, and has authored many articles. Ms. Millar is one of the vice chairs of the International Chamber of Commerce (ICC) Marketing and Advertising Commission, and chair of its Working Group on Sustainability, where she spearheaded the development of the ICC Framework Guides on Environmental Marketing Claims.

Ms. Millar is AV® PreeminentTM Rated by Martindale-Hubbell and for the eigth consecutive year was selected by her peers for inclusion in The Best Lawyers in America® 2018 for her work in practicing Advertising Law. She has also received the distinguished honor of Advertising Law “Lawyer of the Year” 2014 in Washington, DC by Best Lawyers®, and was awarded Advertising and Marketing Lawyer of the Year USA by Finance Monthly for their Finance Monthly Global Awards 2017.

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Photo of Jean-Cyril Walker Jean-Cyril Walker

JC Walker practices environmental, product safety and energy efficiency law.

Mr. Walker’s environmental practice focuses on a wide range of matters, including compliance with U.S. requirements governing the safe management and disposal of chemical and hazardous substances under the Resource Conservation and Recovery…

JC Walker practices environmental, product safety and energy efficiency law.

Mr. Walker’s environmental practice focuses on a wide range of matters, including compliance with U.S. requirements governing the safe management and disposal of chemical and hazardous substances under the Resource Conservation and Recovery Act and state analogues. Mr. Walker regularly advises industry and trade association clients on regulations of hazardous air pollutants under the federal Clean Air Act (CAA) and state and local air pollution statutes, as well as emissions of volatile organic compounds (VOCs) in adhesives, paints, and other industrial and consumer products.

Mr. Walker also regularly advises clients on product safety issues. This includes assessing compliance with the Federal Hazardous Substances Act (FHSA), other Consumer Product Safety Commission (CPSC) requirements, and state consumer product requirements.

Additionally, Mr. Walker counsels a broad range of industries on compliance with the U.S. Energy Policy and Conservation Act and California’s energy efficiency regulations. Representative clients include manufacturers and distributors of: consumer appliances; commercial refrigeration equipment; heating, ventilation and air conditioning equipment; and computers and consumer electronic devices.

In addition to compliance advice, Mr. Walker regularly represents clients in actions brought by the U.S. Environmental Protection Agency, the Department of Energy, the Federal Trade Commission (FTC), and other Federal and state agencies.

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  • Posted in:
    Administrative and Regulatory
  • Blog:
    Consumer Protection Connection
  • Organization:
    Keller Heckman
  • Article: View Original Source

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