RadioShack Deal Sets Standard for Consumer Data Transfers

May 21, 2015 – In The News

Scott L. Vernick was quoted in the Law360 article, “RadioShack Deal Sets Standard for Consumer Data Transfers.” Full text can be found in the May 21, 2015, issue, but a synopsis is below.

On Wednesday, U.S. Bankruptcy Judge Brendan L. Shannon approved a deal in which RadioShack Corp. agreed to severely limit its sale of customer data in order to resolve privacy concerns raised by 38 state attorneys general.

The Federal Trade Commission’s Bureau of Consumer Protection raised similar concerns in a letter to the court-appointed consumer privacy ombudsman, asserting that the sale of customer data would likely break RadioShack’s express promise not to sell or rent such information, and may constitute a deceptive or unfair practice under Section 5 of the FTC Act.

“If you're doing a deal these days, you're going to look at this and be mindful of the fact that state attorneys general and the FTC have appointed themselves as de facto regulators in any transfer of consumer data in the context of a transaction,” said Scott Vernick, a noted privacy attorney.

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