Wednesday, December 1, 2021
54.4 F
Fort Worth

RadioShack’s sale of customer data could be unlawful, FTC says

🕐 1 min read

WASHINGTON — RadioShack’s sale of customer data as part of its bankruptcy case could violate federal law, according to the Federal Trade Commission, which wants the company first to get consent from its shoppers.

RadioShack collected personal information about millions of consumers and promised the data wouldn’t be sold, the agency said in a letter dated May 16 that was made public Monday.

“Consumers provided personal information to RadioShack with the expectation that RadioShack might use it, for example, to make new offers of interest to consumers, but not to sell or rent it,” Jessica Rich, the head of the FTC’s consumer protection bureau, wrote in a letter to a privacy ombudsman appointed by the bankruptcy court.

Standard General LP won an auction for RadioShack’s assets, beating 16 other bidders. It agreed to pay $26.2 million for the chain’s name and intellectual property. The sale of the electronics retailer’s customer data has drawn objections from 37 state attorneys general.

Standard General has been in talks with the FTC and state officials about how to resolve the privacy concerns, people familiar with the matter said last week. As of Friday, the hedge fund believed it was close to coming to terms on the issue, one of the people said. A hearing to approve the deal takes place Wednesday.

The FTC has a consumer protection mandate to enforce against “unfair or deceptive” practices.

Related Articles

Our Digital Sponsors

Latest Articles

Fort Worth Business Press Logo
This advertisement will close in
00
Months
00
Days
00
Hours
00
Minutes
00
Seconds
seconds..
Click here to continue to Fort Worth Business Press

Not ready to subscribe?

Try a few articles on us.

Enter your email address and we will give you access to three articles a month, to give us a try. You also get an opportunity to receive our newsletter with stories of the day.

This field is for validation purposes and should be left unchanged.

Get our email updates

Stay up-to-date with the issues, companies and people that matter most to business in the Fort Worth.

  • Restaurants
  • Technology
  • and more!

FWBP Morning Brief

FWBP 5@5

Weekend Newsletter

  • Banking & Finance
  • Culture
  • Real Estate