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
The Role of Representation and Warranty Insurance in M&A Transactions post image

The Role of Representation and Warranty Insurance in M&A Transactions

In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]

Author: George McGowan

Link to post with title - "The Role of Representation and Warranty Insurance in M&A Transactions"
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What? post image

You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?

Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]

Author: George McGowan

Link to post with title - "You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?"
Why Every Business Should Conduct an Annual Insurance Coverage Review post image

Why Every Business Should Conduct an Annual Insurance Coverage Review

Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]

Author: George McGowan

Link to post with title - "Why Every Business Should Conduct an Annual Insurance Coverage Review"
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To) post image

Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)

Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]

Author: George McGowan

Link to post with title - "Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)"
How to Effectively Use Contracts to Manage Risk post image

How to Effectively Use Contracts to Manage Risk

Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]

Author: George McGowan

Link to post with title - "How to Effectively Use Contracts to Manage Risk"
Understanding Portability for Estate and Gift Tax post image

Understanding Portability for Estate and Gift Tax

Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]

Author: Marc J. Comer

Link to post with title - "Understanding Portability for Estate and Gift Tax"

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. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

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