Dyson suffers legal setback in energy label case

Dyson has suffered a legal setback in its battle to secure improved energy efficiency ratings for its bagless vacumm cleaners.

The UK firm - founded by billionaire inventor Sir James Dyson - is challenging the labelling system at the European Court of Justice (ECJ) amid a wider battle with rival brands on the issue.

It initially went to court claiming that BSH, which owns Bosch (BSE: BOSCHLTD.BO - news) and Siemens (BSE: SIEMENS.BO - news) , was misleading consumers by failing to mention that EU energy efficiency tests were carried out with an empty dust bag.

Dyson argues that vacuums using bags to collect dirt become less energy efficient as they become clogged with dust - forcing their motors to work harder.

That fight remains mired in the lower courts.

But the advocate general in Dyson's challenge to the labelling system confirmed on Thursday he was minded to reject its argument.

Henrik Saugmandsgaard Oe's legal opinion was released ahead of a court ruling, due within weeks.

He found that while EU law made the energy label compulsory - setting out its format and the information to be included in it - Dyson's use of a supplementary label to provide customers more information on energy efficiency would undermine efforts to standardise information.

The court previously ruled, in 2015, that the British company had failed to show there were more reliable and accurate tests available to test a machine's environmental impact.

However, Dyson later applied for a Judicial Review after winning an appeal.

A company spokesperson said on Thursday: "We await the result of the Judicial Review which will determine the future of the label."

Sir James, who has publicly supported the UK's departure from the European Union, is no stranger to legal setbacks recently.

In December, it was announced that a lawsuit the engineering group had brought against its former chief executive had resulted in a settlement worth millions of pounds in favour of Max Conze.