Hewlett-Packard Australia has been fined $A3 million for making false or misleading representations to customers and retailers.
The Federal Court found the computer company had made false or misleading representations about consumer guarantee rights, including the terms of repairs, product returns and warranties.
The ABC reports the Australian Competition and Consumer Commission took court action against HP last October.
Justice Robert Buchanan approved an out-of-court settlement reached by the two parties, which means the company must pay the fine.
HP says it has taken steps to adjust its consumer policies and practices and retrain staff. It says the satisfaction of all of its customers is the "cornerstone" of its business.
The ABC reports Hewlett-Packard also agreed to introduce a new programme to ensure it is complying with Australian consumer law.