Ninth Circuit Upholds Lexmark Cartridge Return Program
Lexington, KY: SEP., 2005
— The Ninth Circuit Court of Appeals has upheld a program under which
Lexmark International, Inc. offers customers discounted laser printer
cartridges in exchange for agreeing to return the used cartridges only
to Lexmark for remanufacturing or recycling.
The case was before the court as a result of an appeal by the Arizona
Cartridge Remanufacturers Association Inc. (ACRA), challenging Lexmarks
Cartridge Return Program. Joining every other court that has ruled upon
challenges to the Lexmark cartridge Return Program (formerly known as
Prebate), the Ninth Circuit reaffirmed the legality of this highly
successful and environmentally friendly program.
Lexmark offers customers discounts on new cartridges in return for
their agreement to return the used cartridges only to Lexmark for
remanufacturing or recycling. Lexmark uses the cartridges in its
remanufacturing business. In order to facilitate competition and
customer choice, Lexmark has always offered cartridges without a
discount that may be remanufactured by anyone for those customers who
desire it.
“The court has ruled in support of customer choice. This is a victory
for customers and their right to choose to receive a discount in
exchange for a simple agreement to return the empty cartridge to
Lexmark for remanufacturing or recycling. Lexmark�s program is good for
customers, good for the environment, and fair to the competition,” said
Vincent J. Cole, Lexmark vice president and general counsel.
Lexmark International, Inc. helps businesses and consumers move
information between the digital and paper worlds. Since its inception
in 1991, Lexmark has become a leading developer, manufacturer and
supplier of printing and imaging solutions for customers in more than
150 countries. Lexmark reported $5.3 billion in revenue in 2004.