EnergyGuide Labels Accuracy In Question

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MIAMI (CBSMiami) – While appliance shopping, some may rely on the bright yellow labels that indicate how much the machine will cost in energy each year.

There's a problem, however, according to economics professor Lucas Davis.

"The labels are wrong…they're quite wrong," said Professor Davis.

WATCH David Sutta's report, click here.

Professor Davis has spent the last two years studying the federally mandated energy-guide labels. His advises buyers not to count on the information.

The labels show information based on national average electricity prices and in many states, like California, New York, Hawaii, energy prices are two times more than the national average.

"The problem is people don't have any idea how to make that conversion but the conversion is pretty simple—when in doubt, double the label's estimate," said Davis.

An appliance that estimates $67 a year, will actually cost closer to $134 a year.

But Davis points out, accurate or not, labels do sever a good purpose. Side by side, they can help you decide which appliances save the most energy and money—even if you're not saving as much as the sticker indicates.

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