Apple and AT&T step in to stop auction of RadioShack’s customer data

By Williams Pelegrin May 14, 2015

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One month after RadioShack filed for bankruptcy in February, the failing retailer said the bankruptcy process would involve selling its customer data. Now that Standard General, a hedge fund that won the auction to purchase the lease on 1,740 RadioShack stores, has said it will try to buy that data, Apple and AT&T have stepped in to put a stop to that, reports AppleInsider.

According to the report, Apple joined the proceedings with a filing of its own, saying that it had an agreement with RadioShack to prevent the re-sale of data belonging to those who purchased an iPhone or other Apple devices from RadioShack.

“In order to protect its customers’ personal information, Apple oversees the collection and use of customer information collected by its retail partners,” reads the filing. “The reseller agreement between Apple and RadioShack protects information collected by RadioShack regarding purchasers of Apple products and prohibits the proposed sale of such information.”

AT&T also made a similar filing to the bankruptcy court, saying RadioShack “seemingly intends” to sell information of those who signed up for an AT&T account through the bankrupt retailer.

There is some good news for Apple and AT&T in regards to this matter. For one, U.S. Bankruptcy Judge Brendan L. Shannon has yet to approve Standard General’s $26.2 million bid for RadioShack and its customer information, which includes 67 million physical addresses and 8.5 million email addresses. In addition, a hearing will be held on May 20 to discuss this customer data sale.

When RadioShack originally announced it would sell customer data as part of the bankruptcy process, Judge Shannon said he would not approve such a sale if its legality is in question. Several attorneys general from different states have already spoken out against RadioShack, arguing that the sale of customer data is a deceptive and misleading business practice.

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Williams Pelegrin

Former Digital Trends Contributor

Williams is an avid New York Yankees fan, speaks Spanish, resides in Colorado, and has an affinity for Frosted Flakes. Send…

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