Whirlpool Energy Star Class Action Settlement Initially Approved

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A California federal judge granted preliminarily approval Tuesday to a consumer class action settlement that would resolve allegations that the Whirlpool Corp. falsely labeled certain models of KitchenAid refrigerators as Energy Star compliant.

The terms of the settlement indicate that California consumers who purchased the KitchenAid KSRG25FV or KSRS25RV model refrigerators with Energy Star logos will either receive a $55 cash payment or a 10 percent rebate off the purchase price of a new KitchenAid-brand major appliance.

Once finalized, the settlement would end a four-year legal battle stemming from a 2011 Department of Energy investigation that found the KitchenAid refrigerators did not meet federal energy efficiency standards, which was subsequently reported to the Environmental Protection Agency.

This discovery prompted two California consumers, Kyle Dei Rossi and Mark Linthicum to file a class action lawsuit against Whirlpool in January 2012. In the original complaint, Dei Rossi and Linthicum claimed they bought Whirlpool refrigerators in 2008 that had the Energy Star logos on them, thinking they were doing the “right thing for the environment.”

However, the model numbers on the appliances showed they were not in compliance with Energy Star requirements and were, therefore, disqualified from the Energy Star program. Additionally, the plaintiffs argued that they paid a higher price for the premium models, believing they would save money in the long term with lower energy bills.

“Instead, class members were hit with a costly double-whammy: a higher up-front price due to the substantial price premium that Energy Star refrigerators command in the marketplace, followed by higher energy bills over the refrigerator’s useful life, since its actual energy consumption is substantially higher than what was promised,” the complaint said.

In 2013, U.S. District Judge Troy Nunley dismissed plaintiffs’ claims for breach of implied warranty of merchantability and violation of the federal Magnuson-Moss Warranty Act, but sustained claims for breach of express warranty and California consumer protection laws.

Then in 2015, Whirlpool asked that the class action lawsuit be dismissed on the grounds that the consumer plaintiffs had not actually suffered any damage. However, Judge Nunley disagreed on grounds that by putting an Energy Star logo on their products, Whirlpool is offering a type of warranty to customers.

Judge Nunley then granted certification for a subclass of members who purchased the refrigerators in California, but denied certification of a 32-state and District of Columbia Class because the laws of the 33 jurisdictions have material differences.

Under the settlement terms, Dei Rossi and Linthicum will receive a $4,000 payment as lead plaintiffs. The settlement with Whirlpool must have a fairness hearing before Judge Nunley which is set for May 18, 2017 before it is finalized.

Class Members will have a chance to object the terms of the settlement or opt out.

The Consumer Class is represented by Scott Bursor, L. Timothy Fisher and Annick Persinger of Bursor & Fisher PA; and David Bower of Faruqi & Faruqi LLP.

The Whirlpool Energy Star Class Action Lawsuit is Kyle Dei Rossi, et al. v. Whirlpool Corp., et al., Case No. 2:12-cv-00125, in the U.S. District Court for the Eastern District of California.

UPDATE: The Whirlpool Energy Star class action settlement is now open! Click here to file a claim!