for Business

Complying with the

Appliance Labeling Rule:

A Guide for Retailers

FTC FACTS

ENVIRONMENT

1-877-FTC-HELP

FEDERAL TRADE COMMISSION FOR THE CONSUMER

www.ftc.gov

ince 1980, manufacturers of certain appliances have been required

to attach EnergyGuide labels to their appliances to give consumers

important information about the energy use of the appliance. The

labels must be hung on the inside of the appliance or secured to the outside. They

are designed to help shoppers choose appliances that use less gas or electricity,

cost less to operate and help protect the environment.

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Facts for Business

The Federal Trade Commissions Appliance

Labeling Rule requires EnergyGuide labels on:

 Refrigerators, freezers, dishwashers, clothes

washers

 Water heaters, furnaces, boilers

 Central air conditioners, room air conditioners, heat pumps

 Pool heaters

Showroom Dealers

If you sell any of these appliances in a

showroom, you are not permitted to remove the

labels, cover them up or otherwise make them

illegible. If a label should become detached from

an appliance on your showroom floor  a more

likely occurrence for hang tags than for labels

adhered directly to the appliance  its a good

idea to reattach it.

In the case of central home heating and

cooling equipment, the EnergyGuide label provides a summary of the more detailed energy

efficiency and usage information that manufacturers are required to provide with their products

through a fact sheet or industry association

directory. You are required to provide this information to your customers.

Direct Marketers

No matter how complete a catalog or

website may be, neither one allows a potential

purchaser to walk up to an appliance and read the

EnergyGuide label. The Appliance Labeling Rule

has special provisions that require direct marketers to provide the same energy usage information

for consumers, whether they shop via catalog or

the Internet or in a physical showroom.

Catalog and online dealers are required to

provide:

 the capacity of the particular model;

 for refrigerators, freezers, dishwashers,

clothes washers and water heaters, the estimated annual energy consumption of the

model;

 for air conditioners, heat pumps, furnaces,

boilers and pool heaters, the energy efficiency

rating; and

 the range of estimated annual energy consumption, or energy efficiency ratings, of

comparable appliances.

This information is on the labels that the

manufacturer attaches to the appliances. Manufacturers of furnaces, boilers, central air conditioners and heat pumps also have to give you the

same information through fact sheets or an

industry trade association directory.

If you sell appliances through a printed

catalog, this information must appear on the same

page as the description of the appliance.

If you sell appliances through a website, you

may put this information next to the description

of the appliance, or you may use a hyperlink to

take the reader to another page that contains the

required information. If you use a hyperlink, it

should be:

 Next to the description of the appliance so

that the reader will see it. The link should be

clear and conspicuous, that is, easy to see and

notice.

 Readily identified as a link. Use visual cues

for the link: make it a different color than the

surrounding text, underline it or incorporate a

small graphic or icon. Using the same text

style for all hyperlinks throughout your site

will help the reader identify the link.

 Meaningful. It should give the visitor a

reason to click on it. For example, labeling

the link Energy Efficiency Information is

more likely to bring a consumer to the link

than a label that says Legally Required

Disclosures. Consider using a label and a

yellow-and-black EnergyGuide icon

[ ], which you can download from

the FTCs website at www.ftc.gov/appliances

 A direct connection to the energy efficiency

information. The link should go directly to the
Facts for Business

page providing the information, not to an

intermediate page that requires the reader to

click again. In addition, the reader should not

have to scroll down the screen to find the

applicable information.

The Benefits

The FTCs Appliance Labeling Rule offers a

valuable service to consumers. It helps them

make educated decisions about their appliances

by enabling them to compare purchase prices

along with long-term operating costs. It also

helps consumers do their part to conserve limited

natural resources.

For More Information

The Federal Trade Commission offers a wide

range of publications for businesses online at

www.ftc.gov and in print. Call the FTCs Consumer Response Center toll-free, 1-877-FTCHELP (382-4357) (TDD: 202-326-2502) or

write: Federal Trade Commission, Consumer

Response Center, 600 Pennsylvania Avenue NW,

Washington, DC 20580.

The Department of Energys Energy Efficiency and Renewable Energy Network offers a

clearinghouse of energy efficiency information at

www.eren.doe.gov This information also is

available from DOEs toll-free hotline, 1-800-

DOE-EREC (363-3732) (TDD: 1-800-273-2957)

or from the U.S. Department of Energy  EREC,

PO Box 3048, Merrifield, VA 22116.

Your state and local energy offices and local

utility companies also may be good sources of

information.
Federal Trade Commission

Bureau of Consumer Protection

Office of Consumer and Business Education

Produced in cooperation with the U.S. Department of Energy

June 2000

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Facts for Business