FOR IMMEDIATE RELEASE:  July 26, 1989


           FTC CHARGES APPLIANCE-STORE CHAIN ILLEGALLY
          REMOVED ENERGY LABELS; COMPANY AGREES TO PAY
          $45,000 IN CIVIL PENALTIES TO SETTLE CHARGES


     The Federal Trade Commission has charged SILO Inc. with
illegally removing EnergyGuides from appliances it sold, in
violation of the Energy Policy and Conservation Act and the
FTC's Appliance Labeling Rule.  SILO agreed to pay a $45,000
civil penalty, under a consent order.

     This is the first FTC enforcement action of both the Rule
and the Act.  Under the Rule and the Act, manufacturers are
required to place stickers called "EnergyGuides" on the outside
of major appliances.  The EnergyGuides disclose energy usage
information and allow consumers to comparison shop for the most
energy-efficient product.  The Rule and Act prohibit retailers
from removing the labels.

     SILO operates 210 stores across the nation, selling major
appliances.  According to the complaint, SILO made the Energy-
Guides illegible or removed them from products, including
refrigerators, refrigerator-freezers, freezers, dishwashers, and
clothes washers.  

     SILO is based in Philadelphia.  The investigation was
handled by the FTC's Seattle Regional Office.

     Under the Energy Policy and Conservation Act, the Commission
may enforce the Appliance Labeling Rule by accepting administra-
tive consent orders. 

     The vote to accept the consent order was 4-1, with Commis-
sioner Andrew J. Strenio, Jr., dissenting.  Strenio said that he
dissented because the settlement "lacks an injunction barring
SILO from violating the Energy Policy and Conservation Act.  Such
an injunction would increase deterrence against future viola-
tions by SILO or others and thereby assist the Commission in
achieving compliance with this law." 

     This consent order is for settlement purposes only and does
not constitute an admission by the company that it violated the
law. 

     Copies of the complaint, order and Strenio's separate
statement are available from the FTC's Public Reference Branch,
Room 130, 6th St. and Pennsylvania Ave. N.W. Washington, D.C.
20580; 202-326-2222; TTY 202-326-2502.

                             # # # 

MEDIA CONTACT:      Susan Ticknor, Office of Public Affairs, 
                    202-326-2181

STAFF CONTACT:      Charles Harwood, Seattle Regional Office,
                    206-442-4656

(FTC File No. 882 3150)

(silo)