The Austrailan consumer watchdog has attacked "widespread and systemic" misconduct within one of the world's largest computer companies after it was forced to pay $3 million for misleading product warranty claims to consumers and retailers.

Computer giant HP was ordered to pay the civil pecuniary penalty by the Federal Court after the Australian Competition and Consumer Commission instituted proceedings against the company in October, when it alleged contraventions of the Australian Consumer Law.

The grievances included remedies available to consumers being only available at HP’s discretion; consumers being required to have their product repaired multiple times before they being entitled to a replacement; the warranty period for HP products being expired; consumers being required to pay for remedies outside the express warranty period; and products purchased online could only be returned to HP at HP’s sole discretion. Subsequently, the ACCC and HP came to an agreed settlement.

On Friday, the Federal Court ordered Hewlett-Packard Australia (HP) to pay the penalty, which also refered to misrepresentations make made by HP staff working at call centres located around the world.

In his judgment, Justice Buchannan stated that the penalty was appropriate and “reflects an acknowledgment of the seriousness of the respondent’s conduct”.