PII at the Center of RadioShack Bankruptcy Auction and Mediation
A recent New York Times article highlights the disconnect between a company’s privacy policy and the disclosure of user data when the company is sold. According to the Times, while a company, like Hulu, declares that it “respects your privacy”, should the company go up for sale, user names, birth dates, email addresses and unique subscriber information can be made available to the highest bidder. Often it is this very information that can be of most value to a struggling or defunct company. This very issue played out recently with the bankruptcy of RadioShack, the electronics retail store founded in 1921, and the recent sale of its brand.
The now-bankrupt RadioShack reached a mediated agreement with U.S. states on May 14th over the sale of customer data, which barred the transfer of personal customer information; limited the number of emails to be included in the sale; and provided opt-out mechanisms to customers prior to transfer.
New York-based Standard General purchased 1,750 RadioShack stores and trademark and intellectual property, out of bankruptcy. The sale included personal customer information provided by customers to RadioShack over many years, including email addresses, postal addresses and phone numbers.
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