RadioShack presses ahead plan for sale of customer data

The sale of the personal data was withdrawn from a previous auction

RadioShack will press on with its plan to sell its customer data, despite opposition from a number of U.S. states.

The company has asked a bankruptcy court for approval for a second auction of its assets, which includes the consumer data.

The state of Texas, which is leading the action by the states, has opposed the sale of personally identifiable information (PII), citing the online and in-store privacy policies of the bankrupt consumer electronics retailer.

The state claimed that it found from a RadioShack deposition that PII of 117 million customers could be involved. But it learned later from testimony in court that the number of customer files offered for sale might be reduced to around 67 million.

In the first round of sale, RadioShack sold about 1,700 stores to hedge fund Standard General, which entered into an agreement to set up 1,435 of these as co-branded stores with wireless operator Sprint. Some other assets were also sold in the auction.

The sale of customer data, including PII, was withdrawn from the previous auction, though RadioShack did not rule out that it could be put up for sale at a later date.

The case could have privacy implications for the tech industry as it could set a precedent, for example, for large Internet companies holding consumer data, if they happen to go bankrupt.

Texas has asked the U.S. Bankruptcy Court for the District of Delaware for a case management order to ensure that in any motion for sale of the PII, RadioShack should be required to provide information on the kind of personal data that is up for sale and the number of customers that will be affected.

The state's Attorney General Ken Paxton asked the court in a filing to rule that any motion seeking the sale of the PII should specify whether the information is limited to only contact information, such as name, address, phone number, and email address, or whether it also includes other information such as credit card numbers or account history.

On Monday, Texas asked the court that its motion be heard ahead of RadioShack's motion for approval to auction more assets.

The court had ordered in March the appointment of a consumer privacy ombudsman in connection with the potential sale of the consumer data including PII. RadioShack said in a filing Friday that it intends to continue working with the ombudsman and the states with regard to any potential sale of PII, but did not provide details.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesRadioShacksecurityrestructuringprivacy

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?