Sports Authority, Inc. (“Sports Authority”) advertisements have been everywhere lately –‘everything must go!’ But does this include their customers’ personal information, too? Because Sports Authority has filed for Chapter 11 bankruptcy, it must sell all of its assets, which includes its e-commerce website containing about 114 million customers’ files and 25 million email addresses. Of course this hot commodity must go to the highest bidder –Dick’s Sporting Goods –with a $15 million bid. This data is perhaps one of Sports Authority’s most valuable assets. While many consumers might be wondering ‘is this allowed?’ the fact is that businesses have the right to sell customer information as long as their website privacy policies make it clear that data can be transferred in the event of a sale or acquisition or a bankruptcy. Specifically, in this case, Sports Authority says “We may transfer your personal information in the event of a corporate sale, merger, acquisition, dissolution or similar event.” Now, Dick’s Sporting Goods can use the data (in conjunction with its recent purchase of over 31 Sports Authority leases) to determine whether there are specific regions where customers are particularly loyal to Sports Authority and to lure customers who had never purchased from Dick’s Sporting Goods. It could even start surveying Sports Authority customers to see why they favored Sports Authority over Dick’s Sporting Goods. Be on the lookout for those customer surveys coming your way (and make sure your privacy policy allows your business to sell its biggest asset if necessary somewhere down the line).

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