Car sticker debate shouldn't surprise appliance makers
September 3, 2010 11:21 AM
Welcome to our world, say appliance leaders, who have debated the merits of grade-based product labeling for years. The controversy stems from the fact that the U.S. is one of the few countries that doesn’t use a categorical scale to indicate appliance efficiency on its yellow EnergyGuide label. The European Union label features an A-to-G scale, with A being the most efficient and G being the least, while the Australian label features 1 to 6 stars, the more the better.
In the U.S., the EnergyGuide label uses a continuous scale, which shows consumers how a model compares with similar models. Critics argue that the scale isn’t punitive enough. “There’s no way to shine the light on products that are truly the least efficient,” says Noah Horowitz, senior scientist with the National Resource Defense Council. “Why the rest of the world understands this and we don’t is mind-boggling.”
Maybe not, responds the Federal Trade Commission, which administers consumer product labels, including EnergyGuide. James Kohm, associate director of the enforcement division in the FTC’s Bureau of Consumer Protection, told Consumer Reports that categorical labels have at least two problems. “First they have a tendency to convey quality. Consumers might think an A or 5-star product is of higher overall quality, even if it’s inferior in terms of performance or durability.” Then there’s the matter of grade inflation. “We’ve seen less enthusiasm for categorical labels in Europe since pressure from grade inflation has started to cause confusion for consumers,” says Kohn.
It’s true that the European Union’s recent addition of A+ and A++ to certain product categories is a little confusing. On the other hand, seeing a big fat F on an appliance sold here in the U.S. would definitely hammer home its inefficiency.
Maybe a fresh take from the car industry will help settle the debate.
—Daniel DiClerico
Maybe not, responds the Federal Trade Commission, which administers consumer product labels, including EnergyGuide. James Kohm, associate director of the enforcement division in the FTC’s Bureau of Consumer Protection, told Consumer Reports that categorical labels have at least two problems. “First they have a tendency to convey quality. Consumers might think an A or 5-star product is of higher overall quality, even if it’s inferior in terms of performance or durability.” Then there’s the matter of grade inflation. “We’ve seen less enthusiasm for categorical labels in Europe since pressure from grade inflation has started to cause confusion for consumers,” says Kohn.
It’s true that the European Union’s recent addition of A+ and A++ to certain product categories is a little confusing. On the other hand, seeing a big fat F on an appliance sold here in the U.S. would definitely hammer home its inefficiency.
Maybe a fresh take from the car industry will help settle the debate.
—Daniel DiClerico
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Jim in Ohio
September 5, 2010 12:14 AM
If one letter is not enough then they should have a PEDigree. Rate the product on Performance, Energy Efficiency, and Durability on an A - F scale with C being the average for the category.
For example, an all-electric care might get a "C" for performance, an "A" for Energy Efficiency, an a "B" for Durability for a PEDigree of CAB.
Text on the label would describe Performance as "This car can travel x miles on a full charge which is equivalent to y miles per gallon of gas. Similar wording for the other grades.
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