online shopping gone wrong HP agrees to $4M settlement over claims of “falsely advertising” PCs, keyboards HP.com customers from June 2021 to October 2024 are eligible for compensation. Scharon Harding – Apr 17, 2025 5:20 pm | 8 An HP laptop. Credit: Getty An HP laptop. Credit: Getty Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only   Learn more HP Inc. has agreed to pay a $4 million settlement to customers after being accused of “false advertising” of computers and peripherals on its website. Earlier this month, Judge P. Casey Pitts for the US District Court of the San Jose Division of the Northern District of California granted preliminary approval [PDF] of a settlement agreement regarding a class-action complaint first filed against HP on October 13, 2021. The complaint accused HP's website of showing "misleading" original pricing for various computers, mice, and keyboards that was higher than how the products were recently and typically priced. Per the settlement agreement [PDF], HP will contribute $4 million to a "non-reversionary common fund, which shall be used to pay the (i) Settlement Class members’ claims; (ii) court-approved Notice and Settlement Administration Costs; (iii) court-approved Settlement Class Representatives’ Service Award; and (iv) court-approved Settlement Class Counsel Attorneys’ Fees and Costs Award. All residual funds will be distributed pro rata to Settlement Class members who submitted valid claims and cashed checks.” The two plaintiffs who filed the initial complaint may also file a motion to receive a settlement class representative service award for up to $5,000 each, which would come out of the $4 million pool. People who purchased a discounted HP desktop, laptop, mouse, or keyboard that was on sale for “more than 75 percent of the time the products were offered for sale” from June 5, 2021, to October 28, 2024, are eligible for compensation. The full list of eligible products is available here [PDF] and includes HP Spectre, Chromebook Envy, and Pavilion laptops, HP Envy and Omen desktops, and some mechanical keyboards and wireless mice. Depending on the product, class members can receive $10 to $100 per eligible product purchased. An amended complaint filed on July 15, 2022 [PDF] accused HP of breaking the Federal Trade Commission’s laws against deceptive pricing. Among the examples provided was Rodney Carvalho's experience buying an HP All-in-One 24-dp1056qe in September 2021. The complaint reported that HP.com advertised the AIO as being on sale for $899.99 and featured text saying “Save $100 instantly.” The AIO's listing reportedly had a strike-through price suggesting that the computer used to cost $999.99. But, per the complaint, "in the weeks and months prior to Carvalho’s purchase, HP rarely, if ever, offered his computer for sale at the advertised strike-through price of $999.99." The filing claimed that the PC had been going for $899.99 since April 2021. The complaint added: By using misleading strike-through prices to artificially increase the perceived value of HP products, HP harms consumers by inducing them to pay more for its products and make purchases they would not have otherwise made. HP’s strike-through prices also harm competition by giving HP an unfair advantage over other computer manufacturers that do not engage in false reference pricing. Further, the class-action complaint accused HP’s website of “falsely” advertising limited-quantity and limited-time offers. "For example, on May 28, 2021, HP featured Carvalho’s computer in the 'Weekly Deal' section of its website and advertised there was 'Only 1 Left!'” the complaint reads. "Yet in the weeks and months that followed, HP continued to sell Carvalho’s computer but removed any representations about the supposed limited quantity No admittance of wrongdoing HP isn’t admitting to any wrongdoing or liability, per the settlement. However, the use of exaggerated, if not outrightly misleading, reference pricing has become prevalent among online shopping in general and especially among electronics. A $4 million settlement doesn’t devastate a company of HP’s stature. For reference, in its fiscal Q1 2025 earnings report, HP Inc. posted a net revenue of $13.5 billion, up from $13.2 billion in Q1 2024. However, the settlement underscores growing frustration among tech shoppers relying on online portals for their purchases. Similarly to HP, a complaint was filed against Amazon in the US District Court for the Western District of Washington [PDF] in September, accusing the tech firm of listing Fire TVs and Fire TV bundles with higher “List Prices” than what the gadgets had recently sold for. Beyond Fire TVs, the Amazon marketplace has a poor reputation for displaying accurate original pricing. Listings often show original pricing that is based on years-old figures. It’s also common to find products listed on Amazon with original pricing that only existed briefly (sometimes solely to claim that the product’s original price was that high) or that is reflective of a completely different product or a product that's similar but has different specs. Showing how widespread this problem is, in 2023, Dell was fined AU$10 million (about $6.49 million) for "making false and misleading representations on its website about discount prices for add-on computer monitors.” Although there are tools, such as Camelcamelcamel, for tracking Amazon's prices, keeping track of direct manufacturer pricing can be more challenging. Ongoing pressure from frustrated customers and litigation could push tech sellers to be more up-front and accurate about their products’ previous pricing. Scharon Harding Senior Technology Reporter Scharon Harding Senior Technology Reporter Scharon is a Senior Technology Reporter at Ars Technica writing news, reviews, and analysis on consumer gadgets and services. She's been reporting on technology for over 10 years, with bylines at Tom’s Hardware, Channelnomics, and CRN UK. 8 Comments