The U.S. Federal Trade Commission (FTC) issued the Appliance Labeling Rule in 1979 in response to a directive from Congress in the Energy Policy and Conservation Act of 1975 (EPCA). In addition to mandating that the FTC promulgate this labeling Rule, EPCA directed the U.S. Department of Energy (DOE) to establish energy conservation standards for residential household appliances and to develop and maintain test procedures by which members of the appliance industry could measure the efficiency or energy use of these products.

The Rule requires manufacturers of most major household appliances to show energy information about their products on labels so consumers purchasing the appliances can compare the energy use or efficiency of competing models. Without this energy use information on EnergyGuide labels, purchasers would have no way to assess the energy efficiency of appliance products and thus...