Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

RadioShack submits to mediation involving customer data

Author: Joel R. Glucksman

Date: May 21, 2015

Key Contacts

Back

RadioShack submits to mediation involving customer data

RadioShack recently agreed to mediation with state attorneys general who have expressed privacy concerns about the sale of the Fort Worth, Texas-based electronics retailer’s customer data. The company consented to this process after the attorneys general of several states raised questions about whether RadioShack in fact has the right to sell this information without breaching its own privacy policies.

Mediation Scheduled For May 14

Amid these concerns, Greg Gordon, attorney for RadioShack, told U.S. Bankruptcy Judge Brendan Shannon April 28 that the company has agreed to mediation, which was scheduled to begin May 14, according to The Associated Press.

This date falls after an auction of intellectual property assets – which includes the names and addresses of millions of RadioShack’s customers – scheduled for May 11, The Associated Press reported.

However, the attorneys general of Texas, Pennsylvania, Oregon and Tennessee have formally protested this sale, asserting that the details the electronics retailer is providing are not only inadequate, but could also misguide buyers and other interested parties, according to the news source.

Disputes Surrounding Data Eligible For Sale

In addition, exactly what type of customer data RadioShack will be able to sell remains uncertain. Previously, the company said it was looking to sell the personally identifiable information of 117 million customers, the media outlet reported.

However, RadioShack now wants to sell the complete name and address files of 65 million customers, along with what it refers to as “transaction data,” as well as email addresses of another 8.5 million customers, according to the AP.

This transaction data could contain as many as 200 fields, detailing who bought what, where the transaction was made and how much the customer paid, a consultant hired to facilitate the IP sale testified April 28, the media outlet reported.

Request For Disclosure

PrivacyBecause of the wealth of information involved, Hal Morris, a lawyer working for the Texas attorney general’s office, asserted that the court should require RadioShack to provide more detail on exactly what is contained within the transaction data, according to the news source.

He is certainly not alone in bringing up this point. Andrew Vara, acting U.S. Trustee for the RadioShack case, contended earlier this month that because the electronics retailer has provided a “lack of specificity and clarity” surrounding the sale, court-appointed privacy ombudsman Elise Frejka’s ability to perform her duties has suffered, Law360 reported.

In addition, Vara asserted that because RadioShack has not shed enough light on the customer data it wants to sell, the court is unable to consider alternatives that could reduce the harm done to consumer privacy if the sale does indeed take place, according to the news source.

Judge Shannon Weighs In

Amid these concerns, Judge Shannon agreed with Morris’ argument, but did not obligate RadioShack to disclose every one of the 200 fields existing in the consumer database, the AP reported. However, he did provide some guidance on the information the electronics retailer should include.

“I do believe that additional disclosure is necessary with respect to the phrase ‘transaction data,'” said Judge Shannon, according to the news source. In addition, he recommended RadioShack provide a handful of sentences in the summary description that would contain “the sorts of things that I think the typical person might find interesting.”

Even though RadioShack’s attempts to sell customer data have gained some clarity as a result of Judge Shannon agreeing that the company should disclose more detail, these efforts are still facing some resistance, as attorneys representing both AT&T and Verizon Wireless asserted that the electronics retailer is barred from selling the information of customers who bought wireless plans and cell phones at RadioShack stores.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Are Your Conversations with AI Shielded from Discovery? Courts Are Split post image

Are Your Conversations with AI Shielded from Discovery? Courts Are Split

Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]

Author: Chris Seelinger

Link to post with title - "Are Your Conversations with AI Shielded from Discovery? Courts Are Split"
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs post image

Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs

When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]

Author: Marc J. Comer

Link to post with title - "Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs"
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments post image

New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments

New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]

Author: Wendy Rubinstein Quiroga

Link to post with title - "New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments"
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy post image

“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy

A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]

Author: Sean M. Pena

Link to post with title - "“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy"
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders post image

Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders

Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]

Author: Nicholas Wall

Link to post with title - "Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders"
Navigating Disputes: Hire a Partnership Dispute Lawyer post image

Navigating Disputes: Hire a Partnership Dispute Lawyer

A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]

Author: Jay McDaniel

Link to post with title - "Navigating Disputes: Hire a Partnership Dispute Lawyer"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!