Disney-backed Toysmart, which closed down last May, came under fire after reports in June that the company tried to sell its customers' personal information--which it promised never to do--as part of its liquidation sale. The Federal Trade Commission and more than 40 state attorney generals filed suit to stop the sale last summer. -- Greg Sandoval, Special to ZDNet News
A federal judge has given the go-ahead for Toysmart to destroy its highly controversial customer list, according to a Disney spokeswoman and lawyers for Toysmart. Disney had proposed a plan to buy the list from Toysmart for $50,000 and then have it destroyed. Thursday, U.S bankruptcy Judge Carol Kenner approved the plan to destroy the list, which could finally put to rest one of last year's most controversial Internet privacy issues.