RadioShack sale of customer data draws objection from Verizon Wireless

By Kali Hays

New York, April 28 – RadioShack Corp. creditor Cellco Partnership, which does business as Verizon Wireless, objected to the company’s proposed sale of its remaining intellectual property assets and customer data, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the assets for sale include RadioShack’s global sourcing group, its U.S. trademarks and its franchise and dealer network and infrastructure.

Under an agent agreement between RadioShack and Verizon, RadioShack is an authorized seller of Verizon equipment and, as an agent, is able to activate the equipment on Verizon’s cellular network.

In the process of any activation, RadioShack collects Verizon customer information and although the agent agreement contains “extensive confidentiality and related provisions” Verizon said it is “acutely concerned” that RadioShack’s proposed sale includes confidential information of Verizon customers.

Specifically, RadioShack might sell customer information including first and last name, mailing address, e-mail address, phone number, and all related transaction data, according to the objection.

“The agent agreement, RadioShack’s own privacy policy, and applicable [Verizon] policies and procedures to which RadioShack is bound, all prohibit the sale or other disclosure of this subscriber information. Moreover, given the vague description of transaction data, the full extent of what customer data the debtors intend to sell is unclear,” the objection stated.

Verizon went on to claim that RadioShack is obligated to remove any confidential information from all current customer data.

With its objection, Verizon asked that the court modify any order on the bid procedures to make clear RadioShack is required to adhere to agreed upon confidentiality provisions and that the company cannot release or sell any confidential customer information.

RadioShack is a Fort Worth technology retailer that filed for bankruptcy on Feb. 5. Its Chapter 11 case number is 15-10197.

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