FTC Imposes $100K Fine Against Online Retailer for Failing to Post Appliance Energy Info
The Federal Trade Commission announces that an online appliance retailer, Universal Appliances, Kitchens, and Baths, Inc., has agreed to pay a $100,000 penalty to settle charges that it failed to post required EnergyGuide information on its websites to inform consumers about the energy use of major home appliances it sells.
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In addition, the FTC has filed an administrative complaint seeking a penalty of $540,000 against Universal Computers and Electronics, Inc. for similar violations, after it failed to respond to the FTC’s notice of proposed penalty. Universal Computers has not responded to the FTC charges.
FTC Charged Companies With Violations of Appliance Labeling Rule
The FTC charged that both companies violated the agency’s Appliance Labeling Rule, which helps consumers make informed buying decisions by requiring firms to provide energy use information for certain products such as refrigerators, freezers, dishwashers, air conditioners, water heaters, and washing machines.
In all, since November 2010, the FTC has taken legal action against five companies for allegedly violating the Appliance Labeling Rule. In addition to their online sales, the companies operate brick-and-mortar stores in New York, New Jersey, Connecticut, Illinois, and California. Last year, three of the retailers agreed to pay more than $400,000 in total penalties to settle charges that they violated the Rule.
(EnergyGuide information estimates the annual cost to operate an appliance. Under the Energy Policy and Conservation Act, the FTC may assess civil penalties against online retailers that fail to provide EnergyGuide information. The agency must first notify the non-settling companies of the proposed penalty amounts, which it did in these cases. The companies can then choose to pay the proposed penalty or be sued by the FTC in an administrative proceeding.
The Commission votes approving the complaints against both companies, as well as the consent order with Universal Appliances, Kitchens, and Baths, Inc., were 5-0.)