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  • FTC Agrees with Apple in Protecting Consumer Data in Regards to RadioShack Data Sale


    The US Federal Trade Commission has recently intervened in the bankruptcy court dispute regarding the sale of RadioShack customer data. The FTC ended up clarifying that regardless of the sale, the personal privacy of its old customers' needs to remain protected.

    The whole issue was outlined by FTC Consumer Protection Director, Jessica Rich, who in a letter sent to Elisa Frejka, the court-appointed privacy ombudsman in the matter, stated that RadioShack originally collected the data with the promise that it wouldn’t sell the data “to anyone at any time.” Rich ended up arguing that sharing any of 21 categories of data without restrictions would end up breaking this guarantee and represent a “deceptive or unfair practice” under Section 5 of the FTC Act.

    The recommendations included that the court shouldn’t sell the data as a separate asset and that a buy should be in “substantially the same lines of business” as RadioShack, with the buyer agreeing to follow the policies RadioShack originally had when the data was collected. Any changes would require specific consent from consumers prior to any final decisions. Alternatively, Rich did mention that the FTC would accept RadioShack obtaining consent from customers before transferring data and deleting listings for anyone who opts out.

    For those of you who didn’t know, the proposed terms appear to be quite similar to those agreed on by Toysmart.com, which was a bankrupted online toy store that the FTC sued in 2000 for violating Section 5. Similar to RadioShack, Toysmart originally told customers that it wouldn’t share data with third parties either.

    Ultimately, this letter from Rich puts the FTC on the same size as companies such as Apple and AT&T, both of which had objected to sharing consumer data involving their products.

    Source: Law360
    This article was originally published in forum thread: FTC Agrees with Apple in Protecting Consumer Data in Regards to RadioShack Data Sale started by Akshay Masand View original post