TECHNOLOGY - April 27, 1995

Dell Computer, Packard-Bell Questioned by FTC: The two companies have been questioned by the Federal Trade Commission as part of an inquiry into sales of “new” computers containing used parts. FTC officials refused to confirm or deny the investigation. However, Austin, Tex.-based Dell Computer Corp. and Chatsworth-based Packard-Bell Electronics Inc. said they cooperated with the inquiry. Packard-Bell attorney Thomas J. McDermott confirmed the FTC investigation during an April 13 hearing on the Compaq lawsuit in U.S. District Court in Wilmington, Del. At the hearing, McDermott said Packard Bell uses some parts obtained from returned items in PCs it sells as new. McDermott said the company believes the practice is common in the industry, although he acknowledged that the FTC is looking into it.