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AST Reaches Pact on Computer Labels

March 28, 1997|Greg Johnson

AST Research Inc. will no longer sell used computers labeled as new units as part of an agreement reached with regulators in 21 states, the state attorney general's office said. According to the agreement, AST will clearly mark boxes containing hardware that has been returned by consumers and reconditioned before being resold. The Irvine-based computer manufacturer also paid $90,000 to help cover costs of the investigation, but admitted no wrongdoing. AST executives were not immediately available to comment. But Al Shelden, supervising deputy attorney general in San Diego, described the settlement as part of an ongoing investigation into how computers are sold in the U.S. Earlier, Shelden said, Compaq and Packard Bell also agreed to clearly mark returned equipment as used merchandise before selling it.

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