May 21, 2015
Attorney General Olens Joins with State Attorneys General on Agreement to Protect Consumer Privacy in RadioShack Case
Following mediation in federal bankruptcy court, Attorney General Sam Olens today announced a settlement with RadioShack over the sale of its customers’ personally identifiable information. Thirty-eight states joined together to oppose the sale of consumer data earlier this year.
“I am pleased to join this settlement, which will protect the personally identifiable information of Georgians,” said Olens. “With the proliferation of identify-theft, safeguarding consumers’ privacy must be a priority. This settlement gives consumers peace of mind that their sensitive, personal information will not be shared. ”
General Wireless obtained bankruptcy court approval on Wednesday, May 20, to purchase RadioShack's entire e-commerce business, intellectual property and remaining assets, including certain customer data limited by this settlement. The electronic retailer will continue to employ approximately 10,000 former RadioShack employees.
Under the terms of the Settlement Agreement approved on May 20 by U.S. Bankruptcy Judge Brendan Shannon, the overwhelming bulk of RadioShack consumer data will be destroyed, and the new owner of RadioShack will not gain access to any sensitive personally identifiable information, including credit or debit card information, social security numbers, telephone numbers or dates of birth.
General Wireless will be permitted to retain only the email addresses previously given by RadioShack customers requesting product information, and those customers will be provided an express ability to opt out before their email addresses are transferred to the new owner. Any customer receiving a postal mailing from the successor business will also have an express opportunity to opt out of future communications from the company. The agreement will limit the number of email addresses available for transfer to only those obtained during the past two years.
Out of the 117 million customer files, no more than 67 million will be transferred and the rest will be destroyed. General Wireless will be prohibited from selling or sharing any of this customer information in the future with any other entity, including its new co-branded business partner Sprint Communications.