Bloomberg reported that the failed retail chain sold off up to 65 million customer names and home addresses, in addition to 13 million email addresses to one of its creditors as part of its bankruptcy filing.
Upon learning of RadioShack's plans to sell information, two state attorneys general filed lawsuits in opposition. The chief law enforcement officials of both Tennessee and Texas argued that the sale of customers' personal information is a violation of those state's laws, which prevent stores from sharing or selling data if the stores' privacy policies states state they won't sell it.
A bankruptcy court is set to decide Thursday whether RadioShack's sale is legal.
If the court approves it, ownership of the data will be transferred to the New York City-based hedge fund and RadioShack creditor Standard General, which is planning to keep as many as 1,750 stores open, the Wall Street Journal reported.
Under those restrictions, it appears that it might still be possible for RadioShack to sell the information since Standard General is reportedly planning to operate stores.
In 2011, the FTC acknowledged while responding to the now-out-of-business Borders bookstore that bankruptcy cases "may present special circumstances." The federal commission later concluded, however, that the store needed permission from its customers before it could legally sell their information.
The FTC did not respond to a request for comment from TheBlaze it would permit RadioShack to sell any information.
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