Dive Brief:
-
U.S. Bankruptcy Judge Brendan Shannon Tuesday said he would approve bid procedures for RadioShack’s sale of customer data, but that he may not ultimately approve such a sale itself.
-
The court earlier approved a sale of 1,740 of RadioShack stores to hedge fund Standard General LP, which has opened the stores and cobranded them with mobile company Sprint. The retailer’s trademark, sub-brand labels, patents, and the information of some 67 million customers are still to be dealt with.
-
The sale of the data is upsetting privacy and consumer advocates, including attorneys general in several states. The retailer has agreed to mediation on the issue, including the participation of a consumer privacy advocate, with a group of those attorneys general.
Dive Insight:
This looks like an opportunity for RadioShack to sell its customer data after all, but it’s also an opportunity for the states attorneys general that have staked out ground on this issue to make their case. Texas, for one, has said that more information needs to be made public about what kind of data RadioShack has.
Customer data was once a routine asset that was traded and sold during bankruptcy proceedings. But now data goes well beyond names and addresses, and, in an era of massive breaches, consumers are extremely wary. If RadioShack is allowed to sell the data, it could make consumers less open than ever to privacy-shredding retail systems like beacons and in-store tracking.