They allow consumers to compare the energy consumption of similar products, and factor lifetime running cost into their purchasing decision.
[1] The label comprises an energy consumption figure for the appliance and a star rating.
Factors like climate can also influence energy consumption (and efficiency) for some appliances.
It is an international standard for energy efficient consumer products that originated in the United States.
[2] An International Energy Agency survey revealed that compliance by retailers showing the labels was raised from 94% in 2001 to 98% in 2009.