United States - $21 Million Court Order Turns Lights Out on Misleading Bulb Claims

At the FTC’s request, a federal court has ordered a light bulb manufacturer and its owners to pay more than $21 million for consumer redress and other equitable relief for misleading consumers.  The FTC had charged Lights of America Inc. and two individual defendants with exaggerating the performance of their LED light bulbs.The misrepresentations included overstating the light output and life expectancy of LED bulbs on packages and in brochures, and falsely comparing the brightness of the bulbs with that of other light bulbs. According to the FTC, the defendants initially claimed their LED lamps had a 30,000-hour life and lasted “15 times longer than 2,000 hour incandescent bulbs.” But in fact, the documents and data the defendants relied upon showed that none of their LED bulbs that were tested lasted beyond a few thousand hours.In addition to ordering redress that represents the total amount consumers paid, the court order prohibits the defendants from misrepresenting material facts about lighting products.The FTC has recently brought a number of actions involving environmental claims for products, so-called “green claims” including another action earlier this month involving a plastic lumber manufacturer’s claims for recycled content and recyclability. Whether environmental claims are about the product or the packaging, the FTC Green Guides advise that they often require competent and reliable scientific evidence to have a reasonable basis under the FTC Act.  In addition to the text of the revised Green Guides, the FTC website features a summary and an explanatory video.