Compaq Toughens Packaging Policy

Compaq Computer Corp. will take steps to prevent dealers from repackaging used computers and selling them as new under a settlement reached with 22 states, including California. Under the agreement, Compaq will stop providing dealers with materials such as extra marked boxes and factory sealing tape, which had been given to replace cartons damaged or scuffed in transit. Houston-based Compaq, the No. 1 maker of personal computers, will be permitted to give dealers Styrofoam pieces and unmarked boxes for use in returning products to the company. Ward Tisdale, a spokesman for Texas Atty. Gen. Dan Morales, said the investigation was prompted by claims that some Texans may have bought used Compaq computers they thought were new. Compaq shares lost 12.5 cents to close at $80.375 on the NYSE.