U.S. District Court Upholds DOE’s Action Against LG to Enforce Energy Star Requirements

The United States District Court for the District of Columbia upheld the Department of Energy’s decision to remove the Energy Star label from certain inefficient LG refrigerator-freezer models.

As part of its expanded energy efficient enforcement efforts, DOE had taken steps over the past few months to remove the label from these products, which independent testing had shown were consuming significantly more energy than allowed by the Energy Star program.

“The Court has affirmed our efforts to protect consumers and the environment through robust enforcement of our energy efficiency regulations and the Energy Star program,” said DOE General Counsel Scott Blake Harris. “Enhanced energy efficiency is a national priority, and DOE will continue to take aggressive action to ensure manufacturers deliver the energy and cost savings promised to American consumers.”

The Court’s Memorandum Opinion denied LG’s motion for a preliminary injunction that would have allowed the manufacturer to continue using the Energy Star label on approximately 40,000 affected LG refrigerator-freezers. Throughout the proceedings, DOE maintained the government's right to enforce the energy efficiency requirements associated with the Energy Star program. DOE cited the need to protect consumers and the unintended advantage in the marketplace LG gained from testing its products under an exception to the energy use-test procedures used by other manufacturers.

The DOE banned certain LG refrigerators from using the Energy Star label, effective January 2, 2010. This kind of DOE action against manufacturers is very rare, but the decision about LG was the result of months of wrangling between the company and DOE. Last year multiple independent labs confirmed that when certain LG French-door refrigerator-freezers are tested using existing DOE test procedures, they do not qualify for the Energy Star Program.

In November 2008, DOE and LG entered into an agreement that was intended to let LG transition away from test procedures that significantly underestimated the amount of energy that these refrigerators would consume during normal use. Because later independent testing confirmed that problems persisted, DOE exercised its right to give notice and terminate the agreement.

Energy Star is a voluntary program, sponsored through DOE and the U.S. Environmental Protection Agency, that promotes the development and sale of energy-efficient products. The labels associated with the program inform consumers of the most energy-efficient products in a particular product category. Ensuring that the labels are applied only to products that deliver on the promised energy and cost savings protects consumers provides a level playing field in the marketplace--and reduces pollution.