Part of the company’s bankruptcy process now involves the sale of the information of 117 million customers. This information includes names, mailing addresses, phone numbers, email addresses, and even customers’ purchase history. Unsurprisingly, this has aroused the ire of more than a few attorneys general of several states, including RadioShack’s home state of Texas. These attorneys general have filed objections against the auction, arguing RadioShack violated its promise to not sell its mailing list.
In his motion, Texas Attorney General Ken Paxton argued that, even in the form of a bankruptcy auction, RadioShack’s attempted sale of customer data is a “false, misleading, and deceptive business practice.” The motion references a promise made by the retailer in its privacy policy, which was posted on its website.
“At RadioShack, we respect your privacy. We do not sell our mailing list,” the policy reportedly read.
According to Bloomberg, AT&T is also fighting RadioShack’s quest to sell off customer data. The carrier claims that it owns the data — not RadioShack — because it helped the retailer sell phones with detailed AT&T customer information lists and other key info. AT&T argues that the data could be used by a competitor to hurt AT&T’s business.
RadioShack did not issue a comment on the matter, and it’s unclear whether the retailer will follow through with the auction. The rest of the retailers’ plans are slightly more transparent.
When RadioShack announced it had filed for Chapter 11 bankruptcy, Sprint announced it would move into 1,750 locations to allow RadioShack to live as a store-within-a-store. In other words, Sprint would be the main brand on storefronts, with the RadioShack brand still visible within the stores.
Amazon is rumored to have a similar deal with RadioShack, though there hasn’t been any confirmation from either company on that front.
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