Doug Peterson

Nebraska Attorney General

Attorney General Peterson Announces Agreement to Protect Consumer Privacy

May 21, 2015 – Following mediation in federal bankruptcy court, Attorney General Doug Peterson announced a settlement with RadioShack yesterday over the sale of customers’ personally identifiable information. Nebraska was one of thirty-eight states, led by the Texas Attorney General’s Office, that joined together to oppose RadioShack’s proposed sale of consumer data.

“This settlement ensures that the personal information of RadioShack’s former customers will be protected,” Attorney General Peterson said. Attorney General Peterson also commended the joint response of 38 states, noting “the critical importance of speaking with one voice in protecting consumers’ sensitive and personal information.”

Under the terms of the Settlement Agreement, approved yesterday by U.S. Bankruptcy Judge Brendan Shannon, the overwhelming bulk of RadioShack consumer data will be destroyed, and General Wireless—the new owner of RadioShack—will not gain access to any sensitive personally identifiable information, including credit or debit card information, social security numbers, telephone numbers or dates of birth.

Earlier this year, General Wireless, a subsidiary of RadioShack’s largest shareholder, purchased RadioShack's entire e-commerce business, intellectual property, and remaining assets. The electronic retailer also purchased 1,750 RadioShack stores out of the bankruptcy, and will continue to employ approximately 10,000 former RadioShack employees.

As a result of the agreement, General Wireless will be permitted to retain only the email addresses of those who specifically requested product information from RadioShack in the last two years. Additionally, these customers will be provided with the opportunity to opt out before their email addresses are transferred. Any customer receiving a postal mailing from the successor business will also have an express opportunity to opt out of future communications from the company. General Wireless further agreed that it will not sell or share any of this customer information in the future with any other entity, including its new co-branded business partner Sprint Communications.