Complaint Filed Against HP, Staples
December 20, 2007
There was much speculation about why Staples, earlier this year,
stopped selling HP compatible print cartridges in its more than 1,600 North American stores and through its Web site. Many observers did agree, however, that the secretive agreement limited choice and short-changed the consumer. Now a complaint seeking class-action status filed by one consumer alleges that agreement is anticompetitive and violates the Sherman Antitrust Act.
In papers filed in a Massachusetts U.S. District Court earlier this week, the plaintiff, Ranjit Bedi of Pacific Palisades, Calif., claims the agreement between Staples and HP reduces the output of HP compatible cartridges, increases the cost of the compatibles, eliminates interbrand competition between Staples and HP, and limits non-price competition in the market.
The complaint goes on to say HP agreed to pay monetary incentives and benefits to Staples as “marketing incentives” in exchange for the retail giant pulling competing HP compatibles from its shelves. The plaintiffs believe these incentives to exceed $100 million.
Bedi, named as an individual, on his own and on behalf of all similarly situated, bought an HP 710 printer in 2005 or 2006 and purchased replacement ink cartridges every six to nine months, but earlier this year Bedi went to Staples and purchased a three-pack of HP-branded cartridges.
The complaint pertains only to ink cartridges. The plaintiff seeks both injunctive and monetary relief.
