It’s good to see energy efficiency is making headlines.

energy efficiency claims

Last month it was VW over their fraudulent emissions and fuel efficiency claims, which will result in billions of dollars of repairs, customer claims, penalties and untold damage to its, otherwise, excellent reputation. In a positive twist, it seems that VW may redeem its reputation by escalating the development and roll out of affordable electric cars.

Dyson is now reportedly in its competitors’ firing line, being accused of manipulating energy-efficiency tests for its bagless vacuum cleaners and making false or misleading claims about the energy efficiency of its cleaners. This appears to be the next step in a  battle between Dyson and Bosch and Siemens over claims of the energy efficiency of their respective vacuum cleaners.  Dyson has initiated proceedings overseas alleging misleading conduct by Bosch and Siemens. Similar claims to those of VW are made of products responding differently under test and normal use conditions.

What do these two examples of energy efficiency claims show us?

1. Consumers want energy efficient products and efficiency is a valuable point of difference between manufacturers.
2. Manufacturers understand that they need to be continually improving their products to make them as energy efficient and clean as possible.
3. Competitors are always watching and testing and WILL act if they think a manufacturer is making misleading claims to consumers.
4. Customers and regulators will also take action against misleading or fraudulent claims.
5. Manufacturers must keep accurate, true and verifiable records to support any credence claims, including energy efficiency claims, that they make.
6. Credence claims must not be misleading or deceptive in the information they convey or how they convey it.
7. Getting energy efficiency claims and other credence claims wrong can lead to expensive legal battles, recalls, repairs, replacements or refunds, compensation and fines.
8. The damage to a company’s reputation for making misleading and deceptive statements and claims can be enormous and long lasting.
9.  The value of a company can be decimated.
10. The damage can spread though the industry- do we trust other car makers’ claims???

How can this happen in a company?

Acts such as those alleged where engines or software are tampered with to alter test results are not committed by single rogue players. There must be a conspiracy or culture in the companies that allow it.

So, the burning questions include:

1. Who in these companies knew was going on and was complicit?
2.  Who turned a blind eye?
3. What controls  did, or should, these companies have in place to ensure that non complaint and fraudulent acts were not possible?
4. What protection did, or should, whistle blowers have?
5. How much did the board of directors actually know and how much should they have known?

Consumers want energy efficient products and manufacturers can benefit from truly efficient goods, but lying to, and deceiving consumers will be discovered and will cost the company, its directors and shareholders. Companies need to have a healthy culture to thrive into the future.