Packard Bell Sued By Compaq Corp.

Compaq Computer Corp. filed a lawsuit Monday accusing Packard Bell Electronics Inc. of selling products that contain used components and representing them as new.

Packard Bell’s chief executive called the suit a public relations ploy.

It is a sure sign of the animosity Compaq feels toward Packard Bell, which it has not been able to beat in prices or sales of personal computers to consumers.

Compaq, which last year became the No. 1 seller of PCs overall, alleged that Packard Bell does not disclose to potential customers that they may be buying computers that include used parts.

It said Packard Bell disassembles many of its returned products and used some parts in building computers that are sold as new.

Beny Alagem, Packard Bell’s chief executive officer, issued a statement saying the charge is untrue.

“Compaq has evidently developed a public relations strategy to divert our efforts and slow our growth,” Alagem said.