Customer Data Sale In Bankruptcy: Lessons From RadioShack

Law360, New York (July 15, 2015, 2:03 PM EDT) -- Many businesses rely on personally identifiable information (PII) in maintaining and servicing their customers. Increasingly, this information goes well beyond mere customer lists and includes data regarding customer preferences and purchasing history. As a result, selling a business often means selling PII. Selling this intangible asset requires special attention, and a seller of PII should carefully examine its right to sell the PII as well as promises it previously made to consumers regarding its disposal.

This applies even when the sale occurs in bankruptcy. While bankruptcy courts in many contexts have the ability to modify a debtor's obligations to help ensure...

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