Dyson loses £150m vacuum energy labels battle with EU

DYSON has lost an attempt to secure €176.1m (£151.5m) from the European Union as part of a decade-long dispute over energy labels on vacuum cleaners.

Europe’s highest court declared that the European Commission “did not commit a sufficiently serious breach of EU law” when it used faulty efficiency tests that penalised the British company’s vacuum cleaners.

Dyson, whose founder Sir James Dyson was a vocal Brexit backer, has fought the EU over its energy rules since they were introduced in 2014.

The tests were based on an empty vacuum and Dyson claimed they treated its bagless vacuums unfairly as the performance of other models deteriorated as the appliances filled up.

The company threw out the labelling rules in 2018. The following year it claimed damages for lost sales.

However, it has now been defeated in repeated legal efforts, with the European Court of Justice (ECJ) decision yesterday the final ruling. The ECJ said the Commission was faced with “difficulties” and “complexity” when applying the legislation, confirming a ruling from the lower General Court, which had said the breach of law was not serious enough to warrant compensation. Dyson said: “Dyson made history when it won its case in 2018 to overturn the European Commission’s unlawful energy label regime, a regulation that had misled hundreds of millions of European consumers and caused Dyson to suffer £150m in lost sales and investment, plus significant legal costs in pursuit of justice.

“The fact Dyson won its case makes today’s judgment on damages all the more perverse. As has been established, the Commission knowingly used a label that had the effect of misleading consumers over the true performance of vacuum cleaners for years.”

The company added: “This judgment sets an unfairly high bar for manufacturers harmed by the European Union’s illegal acts, allowing its institutions to escape proper accountability. By refusing to compensate those harmed, it is giving a green light to others who seek to undermine lawful competition.

“The ruling must be baffling for consumers across Europe who were so badly misled by this regulation. The Commission knew the label was a sham, yet forced it on consumers anyway.”

Sir James, who has a fortune of £23bn according to the Sunday Times Rich List, accused European rivals of gaming the EU system to mislead consumers.

Dyson’s global headquarters are now in Singapore although Sir James moved his residency back to the UK in 2021.