State AGs watching for consumer data in Radio Shack auction

About two-dozen state government officials are vowing to protect consumers from having their data sold as part of the RadioShack bankruptcy auction.

As major lenders compete to own the electronics retailer, attorneys general (AGs) are bringing attention to the presence of data for 117 million customers in RadioShack’s assets.

{mosads}RadioShack does not plan to include the data in its sale, according to Elise Frejka, the lawyer appointed to handle the information. But that hasn’t stopped state AGs from opposing such a move, should it happen.

The movement began earlier this week when Texas Attorney General Ken Paxton filed an objection to the inclusion of consumer data in the auction. He said he learned of plans to sell the information while deposing two witnesses.

Since then, a slew of other state officials have sent letters of support or filed their own objections.

The two parties competing to own RadioShack are Standard General and Salus Capital Partners, according to The Wall Street Journal.

Standard General wants to maintain the business, while Salus has not divulged its plans for RadioShack.

It is possible, the Journal noted, that Salus could “attempt to reclaim its collateral from RadioShack’s bankruptcy, including the customer data, and sell the package to a company that will keep the brand going online.”

Under those circumstances, the buyer could receive the customer data as long as it promises to abide by RadioShack’s privacy policy.