FTC Energy Labeling Rule
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The Federal Trade Commission (FTC) has issued an Advance Notice of Proposed Rulemaking (ANPR) seeking public comments on potential amendments to the Energy Labeling Rule. In this ANPR, new consumer product categories are proposed to be added—including portable electric spas (PES)—to the labeling program. The rule requires manufactures to attach a yellow EnergyGuide label to covered products and prohibits retailers from removing labels. It also directs sellers to post label information on websites and in catalogs. Labels for most covered products contain three main disclosures: estimated annual energy cost, product's energy consumption per DOE test procedures, and a range displaying highest and lowest energy costs for similar models.
Why is this happening? DOE determined that portable electric spas (PES) qualify as a covered product under Energy Policy and Conservation Act of 1975 (EPCA), something IHTA has been working toward. Pursuant to EPCA, the FTC issued the Energy Labeling Rule in 1979, which requires energy labeling for major home appliances and other consumer products to help consumers compare energy usage.
What's next? While this isn't a Notice of Proposed Rulemaking (NOPR), this is a precursor and the information collected will inform a future NOPR. In addition to adding PES as a labeled product category, the ANPR seeks comments to a series of marketing related questions such as how consumer typically shop for labeled products; if labels will assist consumers in purchasing decisions; and if and how energy use varies among similarly sized models. Comments are due December 27, 2022.
