Hewlett-Packard Pays $32.5 Million To Settle Overbilling Charges

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Computer and communications equipment maker Hewlett-Packard, which offers communications infrastructure and billing services to the media industry, has agreed to pay $32.5 million to resolve allegations by the Justice Department that the Palo Alto-based company overbilled the Postal Service for almost a decade for information technology products and services.

Justice alleged that Hewlett-Packard did not hold a most-favored customer pledge not to charge the Postal Service more than comparable customers, and misrepresented pricing during negotiations.

“We will continue to ensure that when the government purchases commercial products, it receives the prices to which it is entitled," said assistant attorney general Stuart Delery.

John Eggerton
John Eggerton

Contributing editor John Eggerton has been an editor and/or writer on media regulation, legislation and policy for over four decades, including covering the FCC, FTC, Congress, the major media trade associations, and the federal courts. In addition to Multichannel News and Broadcasting + Cable, his work has appeared in Radio World, TV Technology, TV Fax, This Week in Consumer Electronics, Variety and the Encyclopedia Britannica.