Posted on 03/27/2015 9:44:35 AM PDT by HonkyTonkMan
Retail chain RadioShack is looking to cash in the information it holds on its customers as part of its bankruptcy sale.
According to Hilco Streambank, personal data including over 65 million customers' names and physical addresses, as well as 13 million email addresses, has been made available to the highest bidder.
All this despite the fact that the company's online privacy policy quite clearly states:
We will not sell or rent your personally identifiable information to anyone at any time. We will not use any personal information beyond what is necessary to assist us in delivering to you the services you have requested. We may send personally identifiable information about you to other organizations when: We have your consent to share the information (you will be provided the opportunity to opt-out if you desire).
According to the Washington Post, the auction for RadioShack's assets has already been completed, with Standard General - a hedge fund and RadioShack's largest shareholder - the winner.
But the deal is yet to be completed as a bankruptcy court will need to approve the deal and, even then, there may be more legal hurdles to overcome before RadioShack can hand over any customer data.
According to a case filed in Texas, state regulators have offered up some objections to the proposed transaction, saying the sale would breach the company's online privacy policy as well as in-store promises not to sell personal identifying information (PII).
The court filing also notes that the sale of customer data is illegal under state laws, which prevent the selling of personal information in violation of a company's own privacy policies, as covered by the Texas Deceptive Trade Practices Act.
Responding to the possibility that RadioShack may sell its customer data in direct conflict with its stated privacy policy, New York Attorney General Eric Schneiderman said in a statement:
When a company collects private customer data on the condition that it will not be resold, it is the company’s responsibility to uphold their end of the bargain. My office will continue to monitor Radio Shack’s bankruptcy sale and whether it includes auctioning off private customer data. We are committed to taking appropriate action to protect New York consumers.
But it's not only the authorities that are concerned about the privacy implications of this case - AT&T wants RadioShack to destroy the data, fearing that the data may fall into the hands of its competitors and claiming that some of it was obtained through the sale of its mobile contracts and is thus not RadioShack's property in the first place.
To further complicate matters, a previous case in Manhattan may have some bearing after authorities approved the auctioning off of personal data under some circumstances.
In 2011, the Federal Trade Commission (FTC) gave the green light to the $13.9 million sale of Borders' intellectual property to Barnes & Noble, on condition that the same privacy policy applied, the buyer operated within the same line of business, and if the data was sold in conjunction with other assets.
With Standard General reportedly looking to keep some RadioShack stores open, it may try to argue that any use of customer data may fall into a similar situation.
So what can consumers do to protect their data?
While the RadioShack ship may have already sailed, consumers should be aware that there is no legal requirement to hand over any information to a company beyond that which is required to complete the transaction.
So, next time a business asks for additional information that is incidental to the transaction being carried out, you are well within your rights to say no.
Good News 1: Nobody shopped there
Good News 2: Data was stored on a TRS-80
They migrated it to a Commodore 64 at the last moment.
I always told them my name was Elmer Fudd
I always gave them made up info. The last time my name was Dale Dump. I also go round & round with places I get hair cuts. They want a lot of info that is no way relevant to me getting a hair cut.
Wow, who would have foreseen this happening...but seriously, I’m pretty certain that this will be stopped quickly by the courts. Bankruptcy does not release them from _all_ of their former agreements. To do otherwise would set an unacceptable precedent in the future, and there’s a heck of a lot more (and personal) data now.
Looks as if it’s time for a class action suit to stop this illegal disclosure of personal information.
That information belongs to the individual, not Radio Shack. Radio Shack only has permission to use it in narrowly defined circumstances.
AT&T has it correct. Destroy the data.
I woner if I ever gave them my phone number. They always seem to ask for it.
Sears is another troubled retailer which asks for a lot of customer data.
Caveat Emptor!
The last time i got my hair cut they asked me if i had guns in the house
For me it was T.E. Sticle
Rusty Shackleford
You sure that wasn’t your surgeon? They cut in different places.
Funny you say that, a freeper once said he gives the phone number of the local landfill to places like this!
ah...supercomputer, Borges! Remember the BBS days....(sigh)
How much did they get for their self-respect?
He was great opened for DEVO at the Great Western Forum
You didnt keep us open.
Here's what you get.
nah nah nah nah nah nah
When they call I hope they ask how the BeeGees are doing...
I was waiting in line at a store and it was amazing that people just give their phone numbers like it’s nothing. I refuse to give my number and usually the poor cashier doesn’t know what to do. If their system is set up so that they MUST enter a phone number I leave. If I REALLY need the items then my number is always 559-555-1212. Go ahead. Call. If Radio Shack is selling customer info then I welcome their demise. I get some stuff their once in a while but absolutely HATE going in to that store. There is some weird creeper that you would expect to see on the post office wall.
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