HP Sued Over Ink Selling Practices

[Chris Gohlke]

<div class='os_post_top_link'><a href='http://arstechnica.com/news.ars/post/20071218-hp-and-staples-accused-of-colluding-on-printer-ink-prices.html' target='_blank'>http://arstechnica.com/news.ars/post/20071218-hp-and-staples-accused-of-colluding-on-printer-ink-prices.html</a><br /><br /></div><i>"A Boston man has filed a class-action lawsuit accusing hardware maker HP and office supply retailer Staples of colluding to inflate the price of printer ink cartridges in violation of federal antitrust law. According to the suit, HP allegedly paid Staples $100 million to refrain from selling inexpensive third-party ink cartridges, although the suit doesn't make it clear how plaintiff Ranjit Bedi arrived at that figure. For most printer companies, ink is the bread and butter of their business. The price of ink for HP ink-jet printers can be as much as $8,000 per gallon, a figure that makes gas-pump price gouging look tame. HP is currently the dominant company in the printing market, and a considerable portion of the company's profits come from ink."</i><br /><br />$8,000/gallon! For that price I expect them to be hand milking the ink from free range octopi. I am curious how a $100 million bribe got through the legal department, it seems both sides should have know you can't hide that kind of money and that it probably would come back to bite them.

[Jason Dunn]

Yeah, ink is so expensive it should be illegal - but in the market where cheap third party ink exists, at least most people have an option. But for HP to bribe Staples to not sell that ink, man, that's just wrong. People should always be given a choice about what products to buy and not be strong-armed into buying HP ink.

[sundown]

I'd love to see how this bribe accusation pans out but the price of ink has driven me to a laser printer. Sometimes I wouldn't use my ink jet for a few weeks and the cartridges would dry out, requiring extensive cleaning (Canon), which I hear uses a lot of ink. Price per page is far less on my new HP color laser and although the photo printing quality isn't as nice, it's not bad. Photo printing isn't something I do a lot of anyway.

[Chris Gohlke]

I'm with you. A year or so ago I picked up a cheap laser when my last inkjet cartridges died out for not much more than the replacement carts would have cost. I really don't miss printing color at home and the laser cartridges are much more cost effective. I especially like that they don't dry out if you are an infrequent printer.

[gdoerr56]

Not that I'm here to defend HP but remember that you don't need any facts to file a lawsuit, only the potential for money.

Regarding the alleged monies paid to Staples; Keep in mind that these kinds of things happen all the time. Vendors are always cutting deals to have an exclusive relationship. Microsoft, Sony, Nintendo (Game Titles), Apple (Content Providers, etc), Apple (iPhone/AT&amp;T) are all examples are there are tons more.

If you are going to be upset with HP, that's your business. Just make sure you treat everyone doing the same thing with the same level of contempt.