March 6, 2024
HP Wants Consumers To Embrace A Subscription-Based Printing Service
HP is spinning the subscription model as a benefit to small businesses or families, but the deal also requires a two-year commitment as well as monitoring by the company.
On Feb. 29, HP launched a subscription service that allows a printer to be rented, gives those who subscribe a certain number of pages to print, and send them ink every month for a fee. That fee ranges based on the printer model and number of pages allotted, from as low as $6.99 a month for an HP Envy model and 20 printed pages all the way to $35.99 for an HP Officejet Pro model and 700 printed pages.
As Ars Technica reported, the company is spinning the subscription model as a benefit to small businesses or families, but the deal also requires a two-year commitment as well as monitoring by the company. In addition to this, HP requires an active Internet connection, or it will end the service; while continuing to charge for it if the printer is found to be offline.
The company defends this controversial practice by claiming that it is necessary to maintain the service. According to its own privacy policy, HP has the right to “transfer information about you to advertising partners.” Hence, they “recognize your devices” and it also gives those third-party partners the potential ability to “combine information about you with information from other companies in data sharing cooperatives.”
HP also maintains in its privacy policy for its “All-In Plan” that it only “collects necessary data to deliver services like the HP All-In Plan” and that it “does not sell customer data to third parties for advertising or any other purposes.”
However, as PC World reported, HP’s program follows a commitment from HP chief executive Enrique Lorres to make printing an HP subscription service. Lorres claimed in January that the program was driven by a desire to make printing more sustainable. “Our view is that we need to make printing as easy as possible,” Lores said. “And our long-term objective is to make printing a subscription. This is really what we have been driving. We know it reduces the barriers to print, it offers a much more convenient solution to customers, and especially, [it] is more sustainable.”
HP and Lorres, as Digital Trends reported, were already facing criticism for their practice of “bricking,” or effectively shutting down HP printers that use third-party ink. Lores explained this practice by saying that, somehow, ink cartridges exposed their systems to viruses. Lores explained the company’s actual motivations, telling CNBC, “This is something we announced a few years ago that our goal was to reduce the number of what we call unprofitable customers,” Lores told CNBC Television. “Because every time a customer buys a printer, it’s an investment for us. We’re investing [in] that customer, and if this customer doesn’t print enough or doesn’t use our supplies, it’s a bad investment.”
Customers, meanwhile, have sensed that HP’s moves represent a cash grab and have filed several class action lawsuits holding the company responsible for their practice of bricking printers. These lawsuits have resulted in the company having to shell out millions of dollars to affected customers.
According to Top Class Actions, a January 2024 class action suit filed in Illinois claims that HP is effectively running a monopoly in the market for replacement cartridges. The lawsuit states, “In effect, HP used the software update to create a monopoly in the aftermarket for replacement cartridges, permitting it to raise prices without fear of being undercut by competitors.”
The lawsuit claims that HP is in violation of the Sherman Act, the Computer Fraud and Abuse Act, and consumer protection and antitrust statutes in all 50 states as well as the District of Columbia. The plaintiffs are also seeking a jury trial as well as an award for compensatory, statutory, and punitive damages for themselves and all who joined the lawsuit.
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