Skip to main content

FTC wants bankruptcy court to approve RadioShack’s customer data sale under certain conditions

radioshack
Northfoto/Shutterstock
In a move that’s very welcome, the Federal Trade Commission (FTC) is asking the bankruptcy court to protect customer information that’s currently in RadioShack’s possession.

In the announcement post, FTC consumer protection director Jessica Rich isn’t saying that customer information — which includes names, physical addresses, and email addresses of tens of millions of people — can’t be sold. Rich is making the point that it should be done in a way that doesn’t violate customers’ privacy.

The agency suggests that selling the information in a bundle, along with other assets, instead of selling the data by itself would limit concerns over customers’ privacy, especially if that data was sold to another entity that is in a similar line of business as RadioShack.

In addition, the FTC proposed many other recommended conditions to ensure that data is sold responsibly. One such suggestion includes requiring the buyer to only use the data as per the RadioShack privacy policies that were in place when customer information was first collected. Another recommends that the buyer inform customers about the sale of their personal data and offer them the option to say yes or no to new uses of their data by the new company.

RadioShack’s original plan was to sell off customer information as part of the bankruptcy process, an auction that was seemingly won by Standard General and its $26.2 million bid. However, Apple and AT&T got involved in the process, arguing that, since RadioShack was a re-seller of their products, it could not sell customer information gathered from those buying Apple and AT&T products. In addition, several attorneys general have already spoken out against the sale, arguing it’s a misleading and deceptive practice.

A hearing for RadioShack’s sale of customer information will be held on May 20 by U.S. Bankruptcy Judge Brendan L. Shannon, who already said the court will halt the sal,e if he finds its legality is in question. We will update you on the results of the hearing when it happens this Wednesday.

Editors' Recommendations

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…
This cheap Android phone is one of the best I’ve used in 2023
A person holding the Realme 11 Pro+.

Realme is showing the way forward for cheap phones, and although the new Realme 11 Pro+ isn’t perfect, it’s ambitious and interesting in a way low-cost phones very rarely are.

I’ve used the phone for almost a week and can see where its weaknesses lie, but also where Realme is trying new things in order to provide more value and elevate cheap Android phones like this beyond the mundane.
Making it look brilliant

Read more
Motorola did something ridiculous to its new Razr phones
The back of the red Motorola Razr Plus.

Razr Plus in Infinite Black and Viva Magenta Joe Maring/Digital Trends

We can all agree the best name for Motorola’s range of folding smartphones is the Razr, but unfortunately, the conversation doesn’t stop there.

Read more
Oura Ring’s newest feature lets you spy on your friends
A person holding the Oura Ring 3rd generation Horizon model.

The Oura Ring Heritage (left) and Oura Ring Horizon  Andy Boxall/Digital Trends

Oura, the company that produces the Oura Ring smart ring, has introduced its first social feature, which allows wearers to share certain data between friends. It’s called Circles, and its announcement is joined by the final release of its Sleep Staging algorithm, which has been in beta since 2022.

Read more