Borders asset sale to B&N delayed due to customer privacy concerns
Reuters: Borders' IP sale to Barnes & Noble on hold(Reuters) - Borders Group Inc's plan to sell customer information to former rival Barnes & Noble Inc hit a snag on Thursday when a judge raised questions about the company's privacy policy.
Bankruptcy Judge Martin Glenn said at a hearing he needed more time to decide whether the policy covers longer-standing customers and whether certain customers must give their consent before the sale can close.
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While Borders' current privacy policy, implemented in May 2008, makes clear customer information can be sold, questions remain as to whether customers who joined Borders' database before then are subject to the policy and whether they must consent to a sale.
A third-party ombudsman issued a report concluding that certain customers must be given the choice to opt out of the sale.
[For reference: Borders.com privacy policy, dated May 27, 2008]
Bankruptcy Judge Martin Glenn said at a hearing he needed more time to decide whether the policy covers longer-standing customers and whether certain customers must give their consent before the sale can close.
...
While Borders' current privacy policy, implemented in May 2008, makes clear customer information can be sold, questions remain as to whether customers who joined Borders' database before then are subject to the policy and whether they must consent to a sale.
A third-party ombudsman issued a report concluding that certain customers must be given the choice to opt out of the sale.
[For reference: Borders.com privacy policy, dated May 27, 2008]