The suits affect owners of Compaq iPaq Pocket PC handhelds, iPac computers and Presario computers. It alleges that Compaq illegally requires consumers to sign release forms anytime a unit is refunded or replaced under Compaq's one-year express warranty. The release forms require customers to swear they will not disclose the problem or remedy or risk forfeiting their property and open themselves up to a potential lawsuit from Compaq. Nowhere in the Compaq express warranty is the signing of the release mentioned or required.
The required, allegedly illegal, release reads:
"The parties hereto further agree that the terms and conditions created by this Limited Release shall remain confidential. If the releasing parties breach or cause a breach of this Limited Release, it is hereby agreed and understood that Compaq will be entitled to liquidated damages, including not limited to a return of the new Compaq Presario..."
“Compaq is not standing behind their products and is attempting to bully its customers into keeping their mouths shut about the problems they are having,'' said Patrick Woodson, a spokesman for those bringing the case.
The first consumer lawsuit seeks to waive all of the signed releases, force Compaq to abandon its practice and to re-establish all of the proper consumer remedies for purchasing defective equipment.
“In the course of researching this case, we heard from many dissatisfied customers who are fed up with Compaq's tactics. In one case, a computer owner had to fight with Compaq for more than six months before he could get a product that he could even use and then only if he signed a release requiring him not to discuss his situation," Woodson said.
Another lawsuit alleges that Compaq illegally excludes all implied warranty rights in violation of federal law. US law allows companies to limit, but not exclude implied warranty rights for products. Compaq's own warranty violates this law by saying “Compaq makes no other warranties express or implied, including any implied warranties of merchantability and fitness for a particular purpose" (iPac handheld warranty).
“These cases are about forcing Compaq to stop short-changing customers who are getting stuck with defective products,” Woodson added. “These are deceptive practices, they are wrong and they need to stop.”