Compaq Computer Corp has launched a bizarre lawsuit against Packard Bell Electronics Inc, alleging that the company is misleading the public by selling as new computers that contain used components. It alleges that Packard Bell disassembles many of its returned products and uses the parts in machines sold as new. Compaq highlights its own process, which it says carefully distinguishes returned unsold inventory from machines that have been used even if they look new, and that the latter, or any parts from them only go out as machines clearly marked refurbished. Packard Bell said the lawsuit is without merit and designed to stall Packard Bell’s current market momentum, adding that it appears to be a strictly self-serving document, defending Compaq’s practices. Compaq said it bought a number of Packard Bell computers and discovered in laboratory testing that some of the features and capabilities, such as video memory and graphics resolution, had been misrepresented. It also says it learned from i nterviews with former employees that Packard Bell is disassembling returned machines in a facility known as Division 18 and reusing parts in machines ultimately sold as new. It also alleged Packard Bell is removing serial numbers and date codes to hide manufacturing dates or prior use.
