HP Settlement Opens the Door for Procurement: More Choice, Less Risk

For years, printer OEMs like HP have quietly pushed firmware updates that “lock out” third-party cartridges. One day, everything prints fine. The next, after an overnight update, your fleet flashes error messages: “Cartridge not recognized.”

That practice just hit a wall.

Following legal pressure, HP has reached a major settlement requiring the company to:

• Allow customers to opt out of firmware updates, particularly those designed to block non-OEM cartridges.
• Disclose more about data collection from its printers.

This decision is more than a legal footnote—it’s a big win for procurement officers, IT teams, and organizations looking to control costs while maintaining choice in their supply chain.

The Firmware “Lock-Out” Problem

HP isn’t alone—other printer OEMs have used firmware updates to protect their supplies business. But HP has been the most aggressive, with firmware patches that suddenly disable third-party or remanufactured cartridges.

For procurement, this created three big challenges:

1. Unpredictable Costs – Budgets set on remanufactured supplies could be blown if an update forced an emergency purchase of OEM cartridges.

2. Operational Disruption – Overnight lock-outs led to print downtime, helpdesk tickets, and productivity loss.

3. Supplier Risk – Procurement officers had to consider not just product quality, but whether a firmware push might suddenly render a vendor’s cartridge unusable.

In short, HP’s approach shifted risk from OEM to the buyer, undermining the stability that procurement professionals work so hard to secure.

What the Settlement Changes

The recent settlement forces HP to step back:

• Firmware Opt-Out: Customers now have the right to decline updates that interfere with third-party cartridges. This restores choice and helps procurement enforce supply contracts with predictable pricing.
• Transparency on Data Collection: HP must disclose how its printers collect and share usage data. For government and enterprise buyers, this touches on compliance, cybersecurity, and privacy issues increasingly tied to vendor evaluation.

This is more than consumer protection. It’s a recognition that buyers deserve transparency and freedom of choice in their supply chain.

Why This Matters for Procurement Officers

1. Lower Risk in Sourcing Third-Party Supplies

Procurement can confidently pursue cost-saving strategies—like certified remanufactured toner—without fear of sudden lock-outs. This strengthens TCO analysis and justifies supplier diversification.

2. Leverage in Negotiations

With OEMs losing their strongest lock-in tool, procurement gains bargaining power. OEM prices may face downward pressure, and buyers can negotiate more aggressively with both OEM and aftermarket suppliers.

3. Compliance & Privacy Oversight

Printer fleets are often overlooked in IT security audits, yet they generate sensitive data. HP’s requirement to disclose data practices aligns with procurement’s growing role in vetting vendors for cybersecurity and privacy risk.

4. Support for Sustainable and Diverse Suppliers

By reducing the risk of lock-outs, the settlement makes it easier to source from remanufacturers like Clover Imaging and veteran-owned distributors like ASE Direct. This supports ESG goals, supplier diversity requirements, and sustainability initiatives.

Certified Remanufactured vs. Cheap Clones

This settlement isn’t a green light for the lowest-priced Amazon clone cartridges. Procurement still needs to vet suppliers carefully.

The smart move: partner with trusted providers like ASE Direct, Inc. 

• Certified Quality: Page yields and print quality tested to OEM standards.
• Sustainability: Cartridges are remanufactured, not cloned, reducing landfill waste.
• Warranty Protection: Coverage for both cartridge and potential printer damage.
• Compliance Confidence: No patent violations, ISO-certified processes, ESG-friendly.

Through ASE Direct, procurement gets the dual advantage of proven product quality and the supplier diversity benefits of a Service-Disabled Veteran-Owned Small Business (SDVOSB).

What Procurement Should Do Next

1. Review Firmware Policies
   Work with IT to establish a default “opt-out” policy for firmware updates unless explicitly needed for security.

2. Audit Current Suppliers
   Identify where OEM lock-outs may have forced higher costs in the past, and quantify the hidden spend.

3. Explore Remanufactured Options
   Engage with certified partners like ASE Direct to compare OEM, clone, and remanufactured cartridges using a TCO model.

4. Update Procurement Scorecards
   Add “data transparency” and “firmware lock-out risk” as evaluation factors when sourcing printers and supplies.

Conclusion

HP’s settlement represents a turning point in the print supplies industry. For procurement officers, it means more freedom, less risk, and new opportunities to drive cost savings without compromising on compliance or sustainability.

The playing field has shifted. And for those ready to move beyond OEM lock-ins, certified remanufactured toner from ASE Direct is the smart, safe, and strategic choice.

Take control of your print supply chain.

Contact ASE Direct today to explore certified remanufactured options that deliver savings, compliance, and reliability—without the risk of OEM lock-outs.

☎️ 888-204-1938

📩 marketing@asedirect.com

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