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ACRA Lawsuit Attacking Prebate Filed

by Tricia Judge · Recharger Magazine · October 1, 2001 - page(s): 24

"Through the acts, statements and omissions set forth below, defendants (Lexmark) have engaged in a scheme which had the intent and effect of misleading consumers into believing that their printing costs would decrease and that the environment would improve through the purchase of Lexmark Prebate program laser toner cartridges," reads the opening paragraph a complaint filed on Sept. 5 against Lexmark International by the Arizona Cartridge Remanufacturers Association.

The association and its attorney, Ron Katz, a partner in the Coudert Brothers Law Firm granted Recharger Magazine an exclusive first look at the complaint.

The complaint addresses the many advantages of remanufacturing, including benefits to the environment and consumer choice. "Consumers demand choices," it states.

"The remanufacturing industry was born from this concept, and has provided high-quality, low-cost printing products to consumers looking to lower their printing costs."

The association's complaint is based on three causes of action: deceptive advertising, unfair competition and conspiracy. The lawsuit outlines the negative impact of Lexmark programs that interfere with remanufacturers' ability to acquire empty cartridges.

"Empty cartridges are the lifeblood of the remanufacturing industry…The Prebate program therefore has harmed consumers by increasing the price they must pay for Lexmark laser toner cartridges, has limited consumers' choices for cartridges, has lessened the number of vendors from whom they can purchase cartridges, has lessened the supply of cartridges and has harmed the environment by lessening the number of recycled cartridges.

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This article is available in its entirety to RECHARGER Magazine subscribers. Full articles are available six months after their original print. Subscribe today.

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