An online appliance retailer– Universal Appliances, Kitchens, and Baths, Inc. --has agreed to pay a $100,000 penaltyto settleFederal Trade Commission 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.
The company, headquartered in Studio City, Calif., operates brick-and-mortar stores throughout Southern California.
In addition, the FTC has filed an administrative complaint seeking a penalty of $540,000 against another company– Universal Computers and Electronics, Inc. --for similar violations, after the company failed to respond to the FTC’s notice of proposed penalty.
The company, headquartered in New York, also operates online under the name Appliancebestbuys.com.
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 retailersagreed to paymore 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.
