HP Inc. has settled a class action lawsuit alleging that it illegally blocked third-party cartridges from its printers. Customers who used the alternative supplies were hit with a firmware update that made their devices incompatible with third-party products. As a result of the settlement, HP admitted no wrongdoing and paid no money, but agreed to let customers decide whether to install updates that included Dynamic Security.
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The company is at the center of a lawsuit over its implementation of Dynamic Security technology, designed specifically to block third-party cartridges. The lawsuit alleged that the measure forced customers to buy HP products exclusively, which made some printers inoperable after a firmware update. HP denied the allegations but agreed to an out-of-court settlement, avoiding admitting fault or paying any compensation.
One of the plaintiffs in the case was Mobile Emergency Housing Corp (MEHC), which works with government agencies and emergency services to provide shelter to people affected by natural disasters. In August 2019, the organization purchased an HP Color LaserJet Pro M254 and in October 2020, installed a third-party toner from Greensky instead of the original, which cost significantly more. However, a month later, HP sent or activated a firmware update included in the Dynamic Security system, which made the printers incompatible with third-party cartridges.
MEHC CEO Joseph James discovered the problem when he tried to print a document. The HP printer failed to recognize the cartridge and displayed an error message. Performance Automotive encountered a similar situation when it purchased an HP Color LaserJet Pro MFP M281fdw printer in 2018. After installing a firmware update, the device stopped working when third-party cartridges were detected.
HP has been open about its business strategy. In 2024, CEO Enrique Lores explained at the World Economic Forum (WEF) in Davos that the company loses money on hardware sales, but makes up for it with profits from consumables. He added that HP is deliberately reducing the number of unprofitable customers, since every printer sale is an investment in the long-term consumption of HP-branded cartridges.
HP’s strategy is focused on maximizing profits from supplies. The company’s printer and supplies segment generated $4.5 billion in revenue in fiscal 2024, demonstrating the strategic importance of this area to its business. HP also stated that the use of third-party cartridges could pose a security risk, since their controllers could hypothetically be infected with malware. However, no evidence of such cases was provided outside of lab tests.
HP markets genuine cartridges as an environmentally friendly choice, citing its own recycling program. However, MEHC, Performance Automotive, and many HP printer users believe they should be able to choose their own supplies. They argue that Dynamic Security is an artificial market lock designed to eliminate competition and increase customer dependency on HP.
As a result, HP chose to settle. The company’s official notice states: “As part of the settlement, HP agrees to continue to provide certain information about the use of Dynamic Security and to continue to provide printer users the ability to install or decline firmware updates that include Dynamic Security.”