Apple and AT&T tell the bankruptcy court not to allow Radio Shack to sell customer data

Apple and AT&T tell the bankruptcy court not to allow Radio Shack to sell customer data
A hedge fund named Standard General won an auction to purchase the leases on 1740 Radio Shack stores. The fund then said it would spend $26.2 million to buy the Radio Shack name and customer data. Both purchases still require the approval of the bankruptcy court, and this is where Apple and AT&T come in. A filing from the tech titan states that Apple had an agreement with Radio Shack that prevented the re-sale of data pertaining to customers who purchased the iPhone or other Apple devices from Radio Shack.

In order to be an Apple reseller, Radio Shack allegedly agreed that it would not hold any rights to the customer data generated by buyers of Apple devices. Also asking the bankruptcy court not to release consumer data is AT&T Mobility. In the carrier's filing, it says that Radio Shack "seemingly intends" to sell information about customers who signed up for an AT&T account through the electronics retailer.

There is good news for both Apple and AT&T Mobility. U.S. Bankruptcy Judge Brendan L. Shannon said last month that he will not approve the sale of any customer data that cannot legally be sold. A hearing is scheduled for May 20th to discuss the sale of customer data, including 67 million physical addresses and 8.5 million email addresses. 


After years of operating on the edge, Radio Shack attempted to concentrate on smartphone sales but finally teetered into bankruptcy in February. The court has already approved a plan that will allow Sprint to operate in one-third of the retail space in the 1740 Radio Shack stores whose leases could soon be owned by Standard General.

source: AppleInsider

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9 Comments

1. medicci37

Posts: 1361; Member since: Nov 19, 2011

Selling customer data should be illegal

2. Dr.Phil

Posts: 2395; Member since: Feb 14, 2011

Well this happens in practically every business that is sold or taken over. On a smaller scale we see this when a physician retires his private practice and ends up selling the business along with the rights to patient information to whoever takes over. And just to reiterate: medical information is probably more in depth than the information these guys at Radio Shack have access to.

4. OldNorseBruin

Posts: 235; Member since: Mar 12, 2013

That's an EXCELLENT point.

6. dorianb

Posts: 617; Member since: Oct 24, 2012

Man, I haven't shopped at a Radio Shack since Short Circuit 2 was in theaters. "Who's Johnny she said..."https://www.youtube.com/watch?v=yA9WhYnsD_4

8. ojdidit84

Posts: 462; Member since: Jul 16, 2011

The difference here is that medical information is protected by HIPAA laws and can't just be sold to the highest bidder so it's kind of a moot point.

10. waddup121 unregistered

lol...

5. OldNorseBruin

Posts: 235; Member since: Mar 12, 2013

Hell, P.O.S. - F**kBOOK steals ALL of your data and sells it every micro-second!

7. willard12 unregistered

It's hard to steal things that are given away.

9. EbonyPericarp

Posts: 67; Member since: May 02, 2015

One day, when the world becomes civilised, all customer data will be owned by the custom and no one else.

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