RadioShack agrees to provide only e-mail addresses as part of sale

By Kali Hays

New York, May 20 – RadioShack Corp. reached term sheet agreement with its main asset purchaser General Wireless Operations Inc. and the attorneys’ general of 17 states limiting the sale of personal customer information, according to a notice filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The parties undertook mediation from May 14 to May 16 in order to “resolve certain objections raised by various states’ attorneys’ general to the sale of personally identifiable information.”

States involved in the mediation were Connecticut. Georgia, Hawaii, Idaho, Maine, Massachusetts, Missouri, Nebraska, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Texas, Virginia, West Virginia and Wisconsin.

RadioShack’s databases hold about 117 million customer records spread over 170 data categories, and the company proposed to sell certain data as part of its intellectual property assets. Specifically, the company was to sell about 67 million complete customer profiles that included full names, phone numbers, physical addresses and 8.3 million e-mail addresses.

As a result of the mediation, RadioShack has agreed to sell and General Wireless has agreed to purchase only those customer e-mail addresses that were active within the two-year period prior to the company’s bankruptcy filing date.

Transaction data attached to any e-mail address will also be limited to include only the product, price and tender amount, along with the date, time and store location of the transaction.

Under the term sheet, RadioShack will not be allowed to sell e-mail addresses active more than two years preceding the bankruptcy filing date, customer phone numbers, or any transaction data, including credit/debit card numbers, not explicitly allowed in the agreement.

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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