May 212015
 
 May 21, 2015  Business, Featured News

State attorneys general have settled with RadioShack over the sale and use of customer information. RadioShack’s privacy policy was a significant factor in determining what would happen to customer data when the firm filed for bankruptcy and sought to sell its assets. 

Attorney General Eric T. Schneiderman yesterday announced a settlement with RadioShack over the sale of its customers’ personally identifiable information. New York, along with thirty-seven other states, joined together to oppose the sale of consumer data earlier this year.

General Wireless obtained bankruptcy court approval yesterday to purchase RadioShack’s entire e-commerce business, intellectual property and remaining assets, including certain customer data limited by this settlement. The electronic retailer will continue to employ approximately 10,000 former RadioShack employees.

Under the terms of the Settlement Agreement approved on May 20 by U.S. Bankruptcy Judge Brendan Shannon, the overwhelming bulk of RadioShack consumer data will be destroyed, and the new owner of RadioShack will not gain access to any sensitive personally identifiable information, including credit or debit card information, social security numbers, telephone numbers or dates of birth.

General Wireless will be permitted to retain only the email addresses previously given by RadioShack customers requesting product information, and those customers will be provided an express ability to opt out before their email addresses are transferred to the new owner. Any customer who receives a postal mailing from the successor business will also have an express opportunity to opt out of future communications from the company. The agreement will limit the number of email addresses available for transfer to only those obtained during the past two years.

Out of the 117 million customer files, no more than 67 million will be transferred and the rest will be destroyed, and General Wireless will be prohibited from selling or sharing any of this customer information in the future with any other entity, including its new co-branded business partner Sprint Communications.

The mediation was led by the Texas Attorney General’s Office.

SOURCE: Attorney General Eric Schneiderman

Texas A.G. Ken Paxton, in his announcement of the settlement, noted that

Out of the 8.5 million customer email addresses in RadioShack’s files, the new owner will be allowed to retain only the email addresses of those who specifically requested product information in the last two years.

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