FTC Wants Energy Labels on TVs, Rejects Online-Only Disclosure

The Federal Trade Commission is leaning toward requiring TV makers to put energy use labels on products rather than providing such disclosures only online. In proposing that TVs have EnergyGuide labels similar to other appliances, the commission rejected the CEA’s suggestion that research be conducted on various disclosure methods. The FTC is seeking comment on a proposal to require EnergyGuide labeling for TVs.

Several interested parties had “recommended labeling televisions with an EnergyGuide label on the product itself at the point of purchase,” the commission said in a rulemaking notice. Mitsubishi wanted the labels to “substantially follow the existing EnergyGuide format, content and placement requirements,” it said. The Natural Resources Defense Council had pointed out that consumers “continue to make the majority of their individual purchases in stores, despite the fact some pre-shop on the Internet,” and the Consortium for Energy Efficiency said the “most effective energy disclosures are displayed while a consumer views televisions for purchase."

CEA had urged “caution and recommended that the commission conduct research to understand consumer behavior, expectations, and perceptions before proposing any particular disclosure method and wanted careful consideration of “cost impacts.” The FTC said it’s proposing labels on TVs, agreeing with stakeholders that “energy labels will help consumers choose televisions in retail stores.” Online sales accounted for 6.4 percent of TV sold in 2006, the agency said, and so “product labeling is preferable to other disclosure options."

The commission proposed two ways to have EnergyGuide labels on TVs: a “small rectangular adhesive label” stuck vertically or horizontally on the frame surrounding the set or a triangular “cling” label fixed to the bottom right hand corner of the screen. The options give manufacturers “flexibility to account for the configurations of their televisions,” the commission said. Both the proposed labels are “significantly smaller” than EnergyGuide labels required in appliances, it said: “The small size should minimize any effect the labels have on the aesthetic presentation of televisions in the showroom and should not impart the ability of consumers to compare the performance of competing products."

As for content in the labels, the commission is proposing that they have energy costs based on a rate of 11 cents per kilowatt hour and a usage rate of five hours a day and “comparative information in the form of a small scale” similar to EnergyGuide labels for appliances. The commission rejected the CEA’s arguments against requiring comparative information, saying it didn’t find them “compelling.” The CEA said “many variables relevant to energy use could add unnecessary complexity to the disclosure,” and argued that “frequent changes in models on the market would make it difficult to establish and maintain reasonable point of comparison.” There’s no proposal to require information such as screen size, model, multiple functions and screen resolution on the label, the notice said.

The commission also is considering requiring TV makers to use the International Electrotechnical Commission test procedure as adopted by Energy Star. The Energy Star test criteria have advantages over standalone IEC test methods because it makes mandatory several procedures the IEC test leaves optional, the commission said. The Energy Star tests “seek to reflect the manner in which consumers are likely to use the product in their homes,” the FTC said, and adopting Energy Star will avoid imposing separate federal government tests for measuring TV energy use, it said.