As Energy Prices Rise, FTC Prevails in Deceptive Energy-Efficiency Case – Federal Trade Commission News

by | Jun 22, 2022 | Energy

In response to legal action by the Federal Trade Commission, the U.S. District Court for the Middle District of Florida ordered SPM Thermo-Shield, Inc. to permanently halt deceptive energy-efficiency claims it has been making about wall coating products that it sells for houses and other buildings. The court issued a permanent injunction prohibiting SPM Thermo-Shield and its officers from misrepresenting the coatings’ insulating or energy-saving capabilities.“We know consumers are concerned about rising energy costs,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “In this environment, it’s more critical than ever that sellers be honest about energy efficiency claims—and we are poised to hold them accountable when they are not.”

In July 2020, the FTC sued four companies, including Florida-based SPM Thermo-Shield, that sell paint products used to coat buildings and homes, alleging they deceived consumers about their products’ insulation and energy-savings capabilities. The FTC charged the companies with falsely overstating the R-value ratings of the coatings, and making deceptive statements about heat flow and insulating power.

A product’s R-value is a measure of its resistance to heat flow: the higher the R-value, the greater the insulating power. Using R-value and other product information, consumers can make purchasing decisions that improve the energy efficiency of their homes. The R-value depends on the type of insulation, its thickness, and its density. The R-value of most insul …

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