Posted 05/19/2015 at 9:43 AM
Posted 2 years ago
The Federal Trade Commission has publicly weighed in on the legal situation that involves RadioShack and its potential buyer.
In remarks made within a press release, Federal Trade Commission Consumer Protection Director Jessica Rich made recommendations that the bankruptcy court hearing the case involving RadioShack and General Wireless compel the latter to honor RadioShack’s pledge to protect the customer data that is listed among its assets up for sale.
The century-old company filed for bankruptcy earlier this year and declared that it would sell off a section of its assets as part of a restructuring process, but left doubts about the personal data of millions of previous customers.
General Wireless became the main suitor, buying up intellectual property including the brand name to the tune of $26.2 million.
The sale led to a few noted companies, Apple and AT&T among them to oppose the potential purchase of sensitive customer data as the next step by General Wireless.
Rich cited a prior case with a company that looked to sell off assets after entering bankruptcy, but wound up settling with the FTC to avoid releasing personal customer data.
She made further recommendations that her letter be included in remarks to be heard when representatives on behalf of RadioShack appear in the court this Wednesday.