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Mr. Chairman, my amendment would preserve an existing consumer right that has been on the books for many years, but section 4125 of this legislation would prevent consumers from pursuing breach of warranty claims against product manufacturers that inaccurately claim Energy Star compliance. As I said, in doing so, it would eliminate an existing consumer right.
While I see no justification for this change, I see the motive. The Association of Home Appliance Manufacturers, which represents 95 percent of U.S. home appliances and has endorsed this provision, wants to avoid liability.
Consumers pay a premium for Energy Star products. But they don't pay extra because they have a sense of charity; they do it because they have been promised the Energy Star appliances will enable reduced energy usage and lower operation costs. In fact, Energy Star products promise a 10 to 25 percent energy efficiency improvement as compared to Federal minimum standards. So when a manufacturer falsely claims to be Energy Star compliant, consumers are left with a more expensive product without any of the promised benefits. It amounts, really, to fraud.
In the past, manufacturers--including AHAM, the association, members Samsung, LG, and Whirlpool--have falsely claimed that their products meet Energy Star specifications. Consumers have mobilized to be compensated for those false claims, and they deserve that right. My amendment would enable them to retain it.
AHAM claims that my amendment would ``discourage robust participation'' in the Energy Star program. And frankly, I don't see that as a problem. If manufacturers can't stand by their claims of Energy Star compliance, then they shouldn't participate in the program.
Those manufacturers that continue to make Energy Star products will reap the rewards, including higher consumer demand and bigger profits, and that is a win for consumers, honest manufacturers, and the Energy Star program.
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