http://westlawnews.thomson.com/California_Litigation/Insight/2010/12_-_December/HP_uses_%E2%80%98e-credits%E2%80%99_to_settle_suit_over_premature_ink_depletion/
HP WEASELS OUT OF $5M INK CARTRIDGE LAWSUIT WITH FREE INTERNET COUPONS
HP uses ‘e-credits’ to settle suit over premature ink depletion
A
California federal court has preliminarily approved Hewlett-Packard
Co.’s proposal to give consumers $5 million in coupons redeemable at its
online store to settle several class-action lawsuits alleging that its
inkjet printers prematurely depleted or disabled their ink
cartridges.The lawsuits, filed in the U.S. District Court for the
Northern District of California, allege violations of state consumer
protection statutes, breach of warranty and unjust enrichment. Each of
the plaintiffs sought to lead a nationwide class of HP printer users
going as far back as 2001.
The suits claim that HP’s inkjet
printers, faxes and copiers are programmed to force customers to
prematurely buy new ink cartridges. The machines either forcibly
deplete the cartridges’ ink supply or deactivate the cartridges before
their ink has run out, the plaintiffs say.Further, the suits say, the
devices would often refuse to function at all, even when attempting to
perform actions like faxing or scanning that do not require ink, until
the cartridge was replaced.As part of the settlement, HP has agreed to
change the “low on ink” message to say that ink level messages are
estimates only. The messages will also say the cartridge may be used
until the print quality becomes unacceptable.HP will also clearly
disclose how to disable “underprinting,” or printing black text with
color ink or a combination of black and color ink. Users will be able
to, for example, select a “black print cartridge only” mode.
The
company will also clearly disclose the expiration date for ink
cartridges and will state why expiration dates are used.Further, HP will
set aside $5 million to provide credits worth $2 to $6 redeemable at
its website. The credits will be redeemable for the purchase of
printers and printer supplies. Class counsel will receive $2.9 million
in attorney fees.The settlement is subject to final court approval. A
hearing is scheduled for Jan. 28.The plaintiffs were represented by
Justin T. Berger of Cotchett, Pitre & McCarthy in Burlingame, Calif.
http://westlawnews.thomson.com/California_Litigation/Insight/2010/12_-_December/HP_uses_%E2%80%98e-credits%E2%80%99_to_settle_suit_over_premature_ink_depletion/