Forced to compensate customers.
HP did not inform its customers who bought certain models of its printers that non-HP ink cartridges may not work in them. The Australian Competition and Consumer Commission (ACCC) has announced that these customers may now be eligible for compensation due to an undisclosed technology in their printers.
The technology, known as “Dynamic Security Feature” (DSF), was designed to prevent non-HP ink cartridges from being used in these HP printers.
HP has sold approximately 220,000 of these printers in Australia and a large number of them had DSF installed either before the time of purchase or subsequently when a firmware update made available by HP was downloaded by customers.
In September 2016, some owners of HP OfficeJet inkjet printers who were using non-HP ink cartridges had those ink cartridges rejected, and in many cases, received an error message which indicated that the cartridge was damaged, when this was not the case.
“Consumers were not made aware of the restriction on using non-HP ink cartridges when buying the printer or downloading the firmware update, and were denied the choice to accept or reject it.” ACCC deputy chair Dr Michael Schaper said.
“The ACCC was also very concerned that HP used technology to change these printers’ functionality after purchase, without alerting consumers to the restriction on the use of non-HP ink cartridges which was being installed.
“Businesses must disclose all important information about their products, including if there are any restrictions on the use of non-genuine parts or refills,” Dr Schaper added.
HP has admitted that by not disclosing to consumers that these printers, or the firmware update, included technology preventing the use of certain non-HP ink cartridges, it was likely to have breached the Australian Consumer Law by engaging in false, misleading or deceptive conduct.
HP has undertaken to compensate consumers $50 who were prevented from using a non-HP cartridge. More than 2,000 customers who used non-HP cartridges are likely to have been affected by the conduct, making total compensation for consumers over $100,000.
HP will also make it clear on its packaging and at point of sale, where printers contain the DSF technology and that it is designed to prevent the use of non-HP ink cartridges. HP has since made available an automatic firmware update for download which removes the DSF from certain inkjet printer models and allows customers to use non-HP cartridges.
In a statement shared with Appliance Retailer, HP Australia said, “We are pleased that HP Australia has reached a settlement with the ACCC. HP uses dynamic security in select printers (a) to protect the quality of the consumer experience from potential functionality risks that can be introduced using cartridges with cloned chips or modified or non-HP circuitry, (b) to protect HP’s intellectual property, and (c) to reduce counterfeiting of HP supplies and warranty fraud. HP Australia will continue using dynamic security in select printers in accordance with its settlement with the ACCC.”