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Packard Bell Electronics Inc. faces a 12-state investigation over allegations that it sells personal computers as new when they contain used parts.
State attorney generals offices in Florida and Illinois are heading the investigation - prompted by a lawsuit filed by competitor Compaq Computer Corp. in April.
Investigators last month issued subpoenas requesting that the Westlake Village-based company supply marketing documents by July 1.
"We're asking the company how it markets, labels and advertises its products," said Joe Bizzaro, spokesman for the Florida Attorney General's Office. "We want to know if they're taking old parts and selling them as new."
Marshall B. Grossman, an outside attorney for Packard Bell, said the company plans to cooperate with the investigation into whether it uses deceptive advertising.
"The allegations that Compaq made in its complaint and in letters to the Attorney Generals Offices are false and half-proved," Grossman said.
Packard Bell tests returned...