Consumers may be eligible for refunds following Australian Competition and Consumer Commission and Australian Greenhouse Office action over allegedly misleading claims of energy ratings for some washing machines.
The ACCC has accepted court enforceable undertakings from Retravision Pty Ltd and Haier Australia Pty Ltd, in relation to the sale of Haier brand washing machines.
The undertakings follow an ACCC investigation of allegedly false energy rating claims on Haier brand washing machine models XQJ50-31 5kg and XQJ100-96 10kg. The undertakings provide for a full refund to consumers who bought the machines.
Retravision will send letters to all consumers who bought one of the machines offering the refund. Haier will provide the refunds. Both companies cooperated with the ACCC and have undertaken to implement comprehensive trade practices compliance programs.
The matter was referred to the ACCC by the Australian Greenhouse Office under a cooperation agreement between the two agencies to refer potentially misleading energy efficiency claims made in relation to electrical appliances.
In conjunction with the undertakings, the ACCC has requested that Haier Electrical Australia Pty Ltd (formerly Ai Xin International Trading Pty Ltd, trading as Higher Electronics Australasia) to have all whitegoods distributed by it tested at a National Association of Testing Authorities Australia (NATA) accredited, or equivalent, testing laboratory.
Machine failures
When tested at the claimed capacity, the machines failed soil removal, water extraction and energy consumption tests. The tester stated that in the 10 years that check testing has been undertaken to verify manufacturers' energy consumption claims, this is the worst failure on record. The tester noted "very little movement of clothes during the wash and rinse cycles" and that some sections of the test load failed to get wet at all.
"This outcome serves as a warning to electrical appliance wholesalers and retailers to remain vigilant to ensure that energy efficiency labelling is accurate and does not mislead or confuse consumers", ACCC Chairman, Professor Allan Fels, said today.
This was the first matter referred by the AGO to the ACCC under the cooperation agreement.
"The agreement sees a commitment to work together to protect the interests of consumers and ensure that Australia meets its commitment to reduce greenhouse emissions. Not only is this outcome a win for consumers but it demonstrates the ACCC's commitment to pursuing misleading environmental claims".
Dr Tony Marker, Chair of the National Appliance and Equipment Energy Efficiency Committee, who was responsible for referring the matter to the ACCC for investigation, said: "I am very pleased with the outcome and manufacturers should now be aware of what can happen when our check testing program detects false energy labelling.
"Should we detect further serious instances of this type of market misconduct I will have no hesitation in asking the ACCC for assistance again. Consumers should be able to depend on the accuracy of energy labels attached to appliances when trying to make informed decisions as to which product to buy".