Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

RadioShack submits to mediation involving customer data

Author: Joel R. Glucksman

Date: May 21, 2015

Key Contacts

Back

RadioShack submits to mediation involving customer data

RadioShack recently agreed to mediation with state attorneys general who have expressed privacy concerns about the sale of the Fort Worth, Texas-based electronics retailer’s customer data. The company consented to this process after the attorneys general of several states raised questions about whether RadioShack in fact has the right to sell this information without breaching its own privacy policies.

Mediation Scheduled For May 14

Amid these concerns, Greg Gordon, attorney for RadioShack, told U.S. Bankruptcy Judge Brendan Shannon April 28 that the company has agreed to mediation, which was scheduled to begin May 14, according to The Associated Press.

This date falls after an auction of intellectual property assets – which includes the names and addresses of millions of RadioShack’s customers – scheduled for May 11, The Associated Press reported.

However, the attorneys general of Texas, Pennsylvania, Oregon and Tennessee have formally protested this sale, asserting that the details the electronics retailer is providing are not only inadequate, but could also misguide buyers and other interested parties, according to the news source.

Disputes Surrounding Data Eligible For Sale

In addition, exactly what type of customer data RadioShack will be able to sell remains uncertain. Previously, the company said it was looking to sell the personally identifiable information of 117 million customers, the media outlet reported.

However, RadioShack now wants to sell the complete name and address files of 65 million customers, along with what it refers to as “transaction data,” as well as email addresses of another 8.5 million customers, according to the AP.

This transaction data could contain as many as 200 fields, detailing who bought what, where the transaction was made and how much the customer paid, a consultant hired to facilitate the IP sale testified April 28, the media outlet reported.

Request For Disclosure

PrivacyBecause of the wealth of information involved, Hal Morris, a lawyer working for the Texas attorney general’s office, asserted that the court should require RadioShack to provide more detail on exactly what is contained within the transaction data, according to the news source.

He is certainly not alone in bringing up this point. Andrew Vara, acting U.S. Trustee for the RadioShack case, contended earlier this month that because the electronics retailer has provided a “lack of specificity and clarity” surrounding the sale, court-appointed privacy ombudsman Elise Frejka’s ability to perform her duties has suffered, Law360 reported.

In addition, Vara asserted that because RadioShack has not shed enough light on the customer data it wants to sell, the court is unable to consider alternatives that could reduce the harm done to consumer privacy if the sale does indeed take place, according to the news source.

Judge Shannon Weighs In

Amid these concerns, Judge Shannon agreed with Morris’ argument, but did not obligate RadioShack to disclose every one of the 200 fields existing in the consumer database, the AP reported. However, he did provide some guidance on the information the electronics retailer should include.

“I do believe that additional disclosure is necessary with respect to the phrase ‘transaction data,'” said Judge Shannon, according to the news source. In addition, he recommended RadioShack provide a handful of sentences in the summary description that would contain “the sorts of things that I think the typical person might find interesting.”

Even though RadioShack’s attempts to sell customer data have gained some clarity as a result of Judge Shannon agreeing that the company should disclose more detail, these efforts are still facing some resistance, as attorneys representing both AT&T and Verizon Wireless asserted that the electronics retailer is barred from selling the information of customers who bought wireless plans and cell phones at RadioShack stores.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Corporate Transactions: Best Practices for Successful Deals post image

Corporate Transactions: Best Practices for Successful Deals

Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]

Author: Dan Brecher

Link to post with title - "Corporate Transactions: Best Practices for Successful Deals"
How to Conduct a Fair and Legal Employee Termination in 2025 post image

How to Conduct a Fair and Legal Employee Termination in 2025

Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]

Author: Angela A. Turiano

Link to post with title - "How to Conduct a Fair and Legal Employee Termination in 2025"
Admin Dissolution for Annual Report: What You Need to Know post image

Admin Dissolution for Annual Report: What You Need to Know

While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]

Author: Dan Brecher

Link to post with title - "Admin Dissolution for Annual Report: What You Need to Know"
What Is Antitrust Litigation Law? post image

What Is Antitrust Litigation Law?

Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]

Author: Robert E. Levy

Link to post with title - "What Is Antitrust Litigation Law?"
Dissolving Your Business: Essential Legal Steps to Protect Your Interests post image

Dissolving Your Business: Essential Legal Steps to Protect Your Interests

If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]

Author: Christopher D. Warren

Link to post with title - "Dissolving Your Business: Essential Legal Steps to Protect Your Interests"
The Role of Corporate Restructuring in Mergers & Acquisitions post image

The Role of Corporate Restructuring in Mergers & Acquisitions

Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]

Author: Dan Brecher

Link to post with title - "The Role of Corporate Restructuring in Mergers & Acquisitions"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!