Arizona Cartridge Remanufacturers Ass'n v. Lexmark International Inc.

Appellant Arizona Cartridge Remanu-facturers Association (“ACRA”), an association of wholesalers that sell remanufac-tured printer cartridges, appeals the grant of summary judgment to cartridge-maker Lexmark on claims that Lexmark engaged in deceptive and unfair business practices in violation of California law. The dispute arises from Lexmark’s advertising of its “Prebate” program, under which it gives purchasers an upfront discount in exchange for their agreement to return the empty cartridge to Lexmark for remanu-facturing — a form of post-sale restriction on reuse. ACRA claims that Lexmark’s advertising and promotional materials mislead customers into thinking the post-sale restriction is enforceable and that they actually receive a discounted price for the special cartridges. We agree with the district court that ACRA has not offered evidence that Lexmark’s advertisements constitute deceptive or unfair business practices and affirm the grant of summary judgment in favor of Lexmark.

I.

Lexmark, spun off from IBM in 1991, makes and sells laser printers and toner (printer) cartridges. ACRA represents wholesalers that remanufacture emptied Lexmark printer cartridges for reuse.…