Executive Briefings

Agreement Prohibits RadioShack From Selling Customer Data to Third Parties

RadioShack has struck a deal with a coalition of 38 state attorneys general to destroy most of the company's consumer data, stipulating that no credit or debit card account numbers, social security numbers, dates of birth or even phone numbers would be transferred.

"This settlement is a victory for consumer privacy nationwide," says Ken Paxton, attorney general in RadioShack's home state of Texas. "It reflects a growing understanding of the importance of safeguarding customer information."

The agreement was part of the sale of all of RadioShack's assets for $26.2m, and was approved by a bankruptcy court.

Most of the assets, including some limited customer information, were purchased by General Wireless, a subsidiary of RadioShack's largest shareholder, which intends to keep 1,750 of the stores open with the RadioShack name and operate its online business. General Wireless agreed not to sell the customer data it is buying to a third party, and to comply with RadioShack's previous privacy promises.

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"This settlement is a victory for consumer privacy nationwide," says Ken Paxton, attorney general in RadioShack's home state of Texas. "It reflects a growing understanding of the importance of safeguarding customer information."

The agreement was part of the sale of all of RadioShack's assets for $26.2m, and was approved by a bankruptcy court.

Most of the assets, including some limited customer information, were purchased by General Wireless, a subsidiary of RadioShack's largest shareholder, which intends to keep 1,750 of the stores open with the RadioShack name and operate its online business. General Wireless agreed not to sell the customer data it is buying to a third party, and to comply with RadioShack's previous privacy promises.

Read Full Article