An Evaluation of the Federal Trade Commission's EnergyGuide Appliance Label: Final Report and Recommendations

August 2002

Executive Summary

In the United States, the Energy Policy and Conservation Act of 1975 and the National Energy Conservation Policy Act of 1979 directed the U.S. Federal Trade Commission (FTC) to develop a labeling program for certain home appliances and energy-using equipment. The program was launched in 1980 with two legislated goals: to improve energy efficiency and assist consumers in making purchase decisions. In fact, the ability or inability to assist consumers is listed as a primary criterion for deciding to label specific products.

Over the last twenty years, no systematic evaluation of the program or the efficacy of the current label design was undertaken. However, through small-scale studies and anecdotal evidence, prior researchers have found that the U.S. label may not be living up to this legislative mandate. In addition, over the last five years, alternative approaches to appliance labeling have been developed and implemented elsewhere in the world with impressive results in terms of consumer awareness, market impacts, and energy savings.

In this context, ACEEE, with input from other organizations, decided it would be useful to evaluate the efficacy of the EnergyGuide label and determine the best label format and graphical element for U.S. consumers.

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39 pp., 2002, $15.00, A021