Disclosing Energy
Efficiency Information |
A Guide
for Online Sellers of Appliances
If you sell home appliances online, you may be
required to observe the disclosure requirements of the Federal Trade Commission's
Appliance Labeling Rule. The Rule requires manufacturers of certain appliances to affix
yellow-and-black EnergyGuide labels to these appliances. It also requires appliance
retailers to leave the labels in place.
The labels give consumers information about the energy efficiency of competing models
of appliances, and enable them to factor the cost of operating an appliance into their
buying decisions.
Consumers who purchase appliances through a website or catalog never come face-to-face
with EnergyGuide labels. To ensure that these consumers have access to the energy
efficiency information on the EnergyGuide labels before they buy, the FTC requires
merchants to post the information on their sites and catalog sellers to print it in their
catalogs.
If you sell certain appliances through a website, the following questions and answers
should help clarify your legal obligations.
Q. According to the FTC's Appliance Labeling Rule, which appliances require
energy efficiency disclosures?
A. The FTC's labeling and disclosure requirements apply to:
- Refrigerators, freezers, dishwashers, clothes washers;
- Water heaters, furnaces, boilers;
- Central air conditioners, room air conditioners, heat pumps; and
- Pool heaters
Q. What energy efficiency information must an e-tailer or a catalog seller
provide?
A. Dealers who sell covered appliances online or through a catalog must disclose:
- The capacity of the particular model.
- For refrigerators, freezers, dishwashers, clothes washers and water heaters, the model's
estimated annual energy consumption.
- For air conditioners, heat pumps, furnaces, boilers and pool heaters, the energy
efficiency rating.
- The range of estimated annual energy consumption or energy efficiency ratings of
comparable appliances.
Q. Must all websites provide this information?
A. Websites must comply with the Appliance Labeling Rule's disclosure requirements if
they meet the Rule's definition of a catalog - that is, "printed material which
contains the terms of sale, retail price, and instructions for ordering, from which a
retail consumer can order a covered product." A website is considered a
"catalog" if it offers the appliances covered by the Rule, states the price at
which they are available, and has instructions for consumers to order these products.
Q. Where on the website should the disclosure information appear?
A. 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 FTC's
website at www.ftc.gov/appliances.
- A direct connection to the energy efficiency information. The link should go directly to
the 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.
Q. A manufacturer of covered appliances maintains a website with information
about its products, including model numbers, photos, features, technical specifications,
dimensions, and installation instructions. Is it required to post energy efficiency
information on the site?
A. A manufacturer is required to include energy efficiency information on its website
only if the site gives prices for the appliances and instructions for ordering them. If
the site provides information about the appliances but doesn't offer them for sale, the
FTC's disclosure requirements don't apply. However, a manufacturer may voluntarily provide
the information to help alert consumers to the energy efficiency of its products.
Q. A dealer sells appliances through a bricks-and-mortar showroom, and
maintains a website with its address and phone number and information about its products.
The dealer does not sell appliances through the website; indeed, it advises callers and
emailers to visit its showroom. Does the site have to post the energy efficiency
disclosures?
A. If a site does not provide instructions for ordering, it is not subject to the
disclosure requirements. This applies even if the dealer accepts orders from consumers who
see the product information on the website. Nevertheless, the dealer may want to provide
the energy efficiency information as a customer service.
Q. A dealer sells appliances through a showroom and a website, but requires
consumers who buy online to pick up their purchases from the showroom. Is the website
required to post the disclosures?
A. The site is required to post the disclosures because it gives instructions for
ordering appliances. It makes no difference whether the purchaser picks up the item at the
showroom or has it delivered.
Q. A dealer offers appliances through a website. Consumers cannot order online,
but the site gives consumers a telephone number to call to place their order. Is the
website required to post the disclosures?
A. The website is required to post the disclosures because it gives customers ordering
instructions. It doesn't matter how the customer places the order.
Q. A dealer sells appliances through a website, but doesn't physically handle
the merchandise. Once the dealer receives an order, he notifies the manufacturer or a
local distributor, who makes - or arranges for - the delivery. Does the website have to
post the disclosures?
A. Yes, because the dealer sells the appliances through its website, even though it
doesn't stock them.
Q. Company X provides website services to an appliance dealer. The company
designs the dealer's site, hosts the site on its server, and processes credit card orders
placed through the site. The system routes the ordering information to the dealer, who
fulfills the order and receives the payment via its merchant account. Is company X
responsible for making the website disclosures?
A. No. Company X is involved in online appliance sales indirectly. Its services to the
appliance dealer fall into the category of those provided by the dealer's
telecommunications provider, landlord or accountant. In this case, the dealer would be
responsible for posting the required disclosures.
Q. A trade association operates a website that serves as a locator and host for
individual appliance dealers' sites. Based on a template, each dealer site has the same
layout, but is "personalized." The trade association controls what is posted on
the sites, and dealers cannot alter their sites. Each dealer's site allows customers to
order online: When they click on a "Shop Online" icon, customers are transferred
to a page where they select their appliance and then click on a "Buy Now" icon.
The ordering information is transmitted directly to the dealer, who fulfills the order.
Who is responsible for making the energy efficiency disclosures?
A. The dealers are responsible for making the disclosures. Although the dealers allow
the trade association to control the contents of the site, each dealer offers appliances
for sale. That makes each dealer responsible for disclosing the energy efficiency
information.
Q. A portal operates a shopping area. Visitors click to a page where they can
select a category of appliances. After choosing a category, they get descriptions of the
models offered by several dealers, with links to each dealer. Visitors can order
appliances through the portal, which forwards the information to the dealer. Who is
responsible for posting the disclosures?
A. The dealer is responsible for posting the disclosures. The dealer is advertising in
a catalog by virtue of the content it maintains on its own site.
Q. A website offers information about a variety of appliances and recommends
specific models. Consumers can click on an icon to get information about online dealers
who sell the appliances. They also get information from the dealers' websites, displayed
in a frame on the page, that they can use to place an order. Who is responsible for
posting the disclosures?
A. The dealer is responsible for posting the disclosures because he is offering the
appliances on his website.
For More Information
For more information about the Appliance Labeling Rule, visit www.ftc.gov/appliances. For more information
about complying with various FTC Rules and Guides, including the brochure, Dot Com Disclosures, call 1-877-FTC-HELP, or visit
www.ftc.gov. Click on Business Guidance.
The FTC works for the consumer to
prevent fraudulent, deceptive and unfair business practices in the
marketplace and to provide information to help consumers spot, stop and
avoid them. To file a
complaint or to get free information
on consumer issues, visit
www.ftc.gov or
call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The
FTC enters Internet, telemarketing, identity theft and other fraud-related
complaints into
Consumer Sentinel, a
secure, online database available to hundreds of civil and criminal law
enforcement agencies in the U.S. and abroad.
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FEDERAL TRADE COMMISSION |
FOR THE CONSUMER |
1-877-FTC-HELP |
www.ftc.gov |
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Opportunity to Comment
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Each year, the Ombudsman evaluates enforcement activities and rates each agencys
responsiveness to small business. To comment on FTC actions, call 1-888-734-3247.
October 2000 |