HP Loses Round in Consumer Case Alleging Print Cartridge Scheme

HP Inc. must face fraud and unfair competition claims over its alleged scheme to lock customers into ink-cartridge replacement plans through software updates that undermined printer compatibility with cartridges purchased elsewhere, a federal magistrate in San Jose, Calif., ruled.

Magistrate Judge Susan van Keulen let most of the proposed class action advance in the U.S. District Court for the Northern District of California, saying it’s plausible the tech giant is on the hook for misleading customers about the purpose of the updates and related data collection practices.

Although HP insists its “dynamic security feature benefits customers” and says it “disclosed ...