When electronics retailer Radio Shack filed for bankruptcy, the chain proposed selling customers' personal data to raise cash and repay creditors. That's not gonna happen, and the news is seen as a win for the right to privacy.
A settlement reached today killed the data-sale scheme, and legally protects most customer information.
Radio Shack's original plan to sell customer data was rejected by suppliers including AT&T and Apple. The Federal Trade Commission and other consumer advocates argued the electronics retailer had promised customers it would protect their data, and that this would be a breach of that promise.
From CNN Money:
RadioShack struck a deal with a coalition of 38 state attorneys general to destroy most of RadioShack's consumer data, and stipulated 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," said 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 $26.2 million, and was approved by the bankruptcy court late last week.
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