HP appeal denied, faces major transparency setback
April 25, 2024
Italian tribunal upholds €10 million fine for HP, mandates clearer consumer disclosures on printer cartridge compatibility.
In a significant development in the ongoing legal battles facing Hewlett-Packard (HP), the Regional Administrative Tribunal for Lazio has rejected the appeal by HP Italy and HP Inc. against the Italian Competition Authority (AGCM). The initial 2020 ruling, which imposed a €10 million fine on HP for deceptive practices related to its printer firmware, stands firm.
The AGCM had previously found that HP did not sufficiently inform consumers about the functionality of their printers, which limited the use of non-original HP cartridges through a security feature known as Dynamic Security. This feature was not clearly stated at the point of sale, leading consumers to believe they could only use HP’s own brand cartridges due to supposed defects or shortages of alternative options.
The tribunal’s decision to uphold the AGCM’s findings underscores the need for transparency in consumer products, especially when manufacturers impose limitations that could mislead or restrict consumer choices. The ruling requires HP to indicate these restrictions on their printer sales packages clearly and mandates a comprehensive report on compliance within specific deadlines.
This legal setback for HP in Italy follows several other global issues the company has faced. In 2022, The Recycler reported that HP agreed to a $1.3 million settlement with Euroconsumers to address similar issues in Belgium, Italy, Spain, and Portugal. Furthermore, HP continues to defend against allegations in the United States regarding printer functionality being disabled due to low ink levels, which does not impact non-ink functions like scanning and faxing.
In addition to the tribunal’s decision in Italy, Hewlett-Packard (HP) finds itself in further legal turmoil as it faces allegations and potential investigations into anticompetitive practices in the United States. The Recycler reports that these allegations assert that HP has been deploying firmware updates that intentionally block the use of non-HP ink cartridges, sparking significant consumer dissatisfaction and scrutiny by legal entities.
The crux of the issue lies in HP’s “dynamic security” feature, which ostensibly ensures that printers operate with original HP ink to maintain quality. However, critics and users argue that HP’s firmware updates, which have been applied since 2016 without prior user notification, effectively enforce the use of HP’s own more expensive ink cartridges by outright refusing to print with third-party options.
Note: AI was used to translate this story from Italian to English.
Categories : World Focus
Tags : AGCM Dynamic Security Firmware Updates HP Inc HP Italy Italy USA
