HP to pay $4 million in class-action settlement over discount claims

It just got a little more expensive to offer too good to be true dealsat least for HP. The tech giant has agreed to pay $4 million to settle a class-action lawsuit alleging it used fake discounts and misleading scarcity claims to entice customers into purchases on its U.S. online store.

The case, which dates back over four years, centered on HPs use of strike-through pricingthe practice of displaying inflated original prices alongside sales tags to create the illusion of deep discounts. Plaintiffs also alleged that HP misled consumers by falsely indicating that items were in limited supply, using phrases like only one left at this price to create urgency.

While HP has agreed to the multimillion-dollar settlement, it has denied all liability and wrongdoing, characterizing the deal as a way to put the matter behind it without admitting fault. The lawsuit, a civil case not involving criminal charges, claimed that HP violated Federal Trade Commission (FTC) rules on deceptive pricing, though regulators were not directly involved in the litigation.

Who can claim a payout?

Eligible consumers are those who purchased certain HP productssuch as laptops, desktops, mice, and keyboardsfrom HPs U.S. online store between June 5, 2021, and October 28, 2024. To qualify, the product must have been labeled on sale for more than 75% of the time during that period.

The products span a wide range of HPs lineup, including Envy, Spectre, Pavilion, Omen, Victus, Chromebook, Chromebase, and other branded devices. Depending on the specifics of their purchases, affected customers can expect cash payments ranging from $10 to $100.

A common online tactic

The HP case is part of a broader trend of online retailers using psychological sales tactics, including artificially inflated reference prices and time-limited offers, to pressure shoppers into buying. While not unique to HP, these strategies have drawn increasing scrutiny from both consumers and legal experts.

Though this particular settlement wont make a dent in HPs bottom linethe company reported $56.3 billion in revenue in 2024it serves as a reminder for shoppers to be skeptical of flashy discounts and always read the fine print.

More information on eligibility and filing a claim is expected to be released through the official class action settlement administrator in the coming months.