FTC Revises Energy Labeling Rule | Practical Law

FTC Revises Energy Labeling Rule | Practical Law

The Federal Trade Commission (FTC) has revised the Energy Labeling Rule's provisions on label image reporting and labeling of ceiling fans, new refrigerator comparability range information, dual-mode refrigerators, central air conditioners, and water heaters.

FTC Revises Energy Labeling Rule

Practical Law Legal Update w-003-3896 (Approx. 4 pages)

FTC Revises Energy Labeling Rule

by Practical Law Commercial Transactions
Published on 16 Sep 2016 • USA (National/Federal)
The Federal Trade Commission (FTC) has revised the Energy Labeling Rule's provisions on label image reporting and labeling of ceiling fans, new refrigerator comparability range information, dual-mode refrigerators, central air conditioners, and water heaters.
The Federal Trade Commission (FTC) has released revisions to the Energy Labeling Rule, which requires energy labeling for major home appliances and other consumer products to assist consumers in making product comparisons (Energy Labeling Rule, 81 Fed. Reg. 63634-01 (Sept. 15, 2016)). The FTC first issued the Energy Labeling Rule in 1979 under the Energy Policy and Conservation Act of 1975 (42 U.S.C. § 6294).
The FTC's revisions to the rule address:
  • The creation of a centralized label database for energy labels, requiring manufacturers to provide links to their online labels.
  • Amendments to the labeling requirements for specific energy devices.
The new regulations go into effect September 15, 2017.

Revised Rules

Centralized Energy Label Database

The new provisions require manufacturers to provide links to their online labels in order to fulfill their reporting requirements under the Energy Labeling Rule. Manufacturers must submit links to the Department of Energy's (DOE) Compliance Certification Management System (CCMS) as part of their normal FTC reporting. The final rule describes the requirements for:
  • Timing. Manufacturers must submit their links either:
    • when they certify their models to the DOE; or
    • at the next subsequent annual report date.
  • Format. Manufacturers have three options for submitting label information:
    • through direct URL links to the labels themselves;
    • through links to a PDF download; or
    • through a link to a website from which users can obtain labels by searching by model number.
  • Existing labels. The new requirement does not grandfather existing labels. Manufacturers must begin submitting label links for existing models at the first applicable annual reporting date after the regulation goes into effect on September 15, 2017.
(16 C.F.R. § 305.8.)

Specific Energy Device Labels

The FTC has also made changes to the labeling requirements for the following specific devices:
The new requirements vary depending on device, but include the following changes, among others:
  • Changes in the layout of the label.
  • Permissions and requirements for including Energy Star ratings.
  • Disclosures regarding estimated annual energy cost and device capacity.
  • Display of information about device comparability.

Practical Implications

Manufacturers should prepare for the changes to the Energy Labeling Rule by:
  • Preparing to submit existing device labels to the CCMS on the first annual reporting date after the new rules go into effect.
  • Changing regulatory compliance plans to ensure new device labels are properly submitted to CCMS under the new rules.
  • Changing device-specific labels to comply with the new rules.
For more information about FTC labeling requirements for consumer goods, see Practice Note, FTC Labeling Requirements for Consumer Goods.