Dyson Seeks $246 Million From EU Over Vacuum Labeling Claim
(Bloomberg) -- Dyson Ltd. is seeking 180 million pounds ($246 million) from the European Commission, saying it lost profits because the bloc required the company to comply with an outdated energy labeling system for vacuum cleaners.
The company in 2018 won a long-running fight to overturn EU rules it blamed for creating “misleading” energy labeling of products. Soon after, the company filed a new case seeking compensation at the EU General Court, the bloc’s second-highest court.
Dyson was disadvantaged by the product labels, which led to additional costs, a spokesperson said Tuesday.
Dyson, which is moving its headquarters to Singapore, has long fought the EU, and founder James Dyson was a major supporter of Brexit. The company argued that the EU label misled consumers by overstating the energy efficiency of old-fashioned bagged vacuum cleaners, which were tested in a clean state that didn’t reflect real-life use.
The commission declined to immediately comment. The case was heard Monday at the Luxembourg-based General Court. The Telegraph reported on the case earlier Tuesday.
Dyson argued that customers would buy a machine claiming to have an A grade based on the EU rating system, but this would downgrade to a G in real-life situations.
In August 2018, the EU General Court in Luxembourg annulled the method imposed on companies to test vacuum cleaners’ energy efficiency, saying it’s not in line with the bloc’s law.
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