HP Inc Faces Class Action Lawsuit Over Alleged Ink Cartridge Monopoly

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HP Inc (HPQ.N) is entangled in a federal lawsuit in Chicago as consumers from various states, including Illinois, New York, and Missouri, accuse the company of antitrust violations. The plaintiffs claim that HP printers refuse replacement ink cartridges from other manufacturers, compelling them to pay exorbitant prices for HP-branded cartridges.

Alleged Violation of Antitrust Laws

In the proposed federal class action filed on Friday, the 11 consumers contend that HP violated U.S. and state antitrust laws, allegedly aiming to monopolize the replacement ink market. The lawsuit accuses HP of failing to inform consumers that automatic software updates would render some printers non-functional unless HP-branded ink were used.

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Unveiling Deceptive Practices

According to the lawsuit, the consumers, faced with non-functional printers, were coerced into purchasing HP-branded ink they would not have otherwise chosen. HP has yet to respond to the allegations, and the plaintiffs’ attorneys from Milberg Coleman Bryson Phillips Grossman have not stated as of Monday.

Previous Legal Actions

This latest lawsuit builds upon previous or pending cases involving HP’s alleged deceptive practices related to ink cartridges. In 2019, HP settled a California case by agreeing to pay $1.5 million to resolve consumer claims without admitting wrongdoing. Last August, a U.S. judge in California ruled that HP must face allegations related to all-in-one printers designed to cease scanning and faxing when low on ink.

California Judges Rule Against HP

In a different California lawsuit last December, a federal judge allowed plaintiffs to sue HP in a class action over its alleged failure to warn consumers about the “Dynamic Security” policy that updates and prevents the use of some third-party cartridges. However, the scope of proposed classes was narrowed, limiting the lawsuit to seeking an injunction against HP’s practices rather than monetary damages.

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Chicago Case Seeks Injunction and Damages

In the Chicago case, the plaintiffs sought an injunction preventing HP from disabling printers unless HP-branded ink is used and monetary damages exceed $5 million. The lawsuit, titled Renee Robinson et al. v. HP Inc., is in the U.S. District Court, Northern District of Illinois, under case number 1:24-cv-00164.

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