AN EVALUATION OF THE FEDERAL TRADE COMMISSION'S ENERGYGUIDE APPLIANCE LABEL:AN INTERIM SUMMARY OF FINDINGS

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An Evaluation of the Federal Trade Commission's EnergyGuide Appliance Label: An Interim Summary of Findings

Christine Egan

July 2000

Abstract

The United States has labeled appliances with the EnergyGuide label since 1980. Consensus is growing that this label is confusing to consumers and has little impact on purchase decisions. Many researchers have documented that alternative labeling approaches are effective in other countries. This report includes a comprehensive evaluation of the U.S. appliance labeling program for white goods, heating and cooling equipment, and water heaters, with an emphasis on products sold through retail outlets.

We discuss the results of primary research with consumers, manufacturers, retail sales staff, and contractors, along with an extensive literature review. To date, this research has included consumer focus groups and semi-structured interviews with various market actors to assess how best to communicate energy information. With consumers and retail sales staff, ACEEE tested five graphical designs—the current U.S. style; a European-style, letter-based graphic; an Australian-style star-based graphic; a speedometer-style graphic; and a thermometer-style graphic. We also tested the perceived consumer value of discrete informational elements (e.g., annual operating cost, life-cycle-cost, and annual kilowatt-hours data). With manufacturers and contractors, we did not directly test alternate designs. Instead, we asked their opinion of and experience with the current EnergyGuide labeling program.

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24 pp., 2000, $12.00, A003