Legislative Highlights Jul/Aug 2000
The bill arises from the July 9 chapter 11 filing of Toysmart.com, an Internet retailer that put its customer lists up for sale as part of the liquidation of the firm's assets, even though the company had a policy against disclosure to third parties. The FTC filed suit against Toysmart.com for this violation.
"It is wrong to use our nation's bankruptcy laws as an excuse to violate a customer's personal privacy. Customers have a right to expect an online firm to adhere to its privacy policies whether it is making a profit or has filed for bankruptcy," said Sen. Leahy upon introduction of the bill.
Bill sponsors hope to attach the bill to the pending, but stalled, Bankruptcy Reform Act of 2000.