Lawyers say Dick Smith can legally sell customer database

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Lawyers claim that it would be legal for the chain store Dick Smith to sell its customer database. The lawyers' announcement came after the chain store promised their customers that the database retail wouldn't happen again.

According to CRN, receivers Ferrier Hodgson have started advertising the immediate sale of the intellectual proper of the store chain Dick Smith, including its retailer's customer database. Ferrier Hodgson's operation claimed that it is looking for the expression of interest in the sale of its branding and trademarks, websites and domain names, as well as the customer database.

A spokesperson for Ferrier Hodgson even told the media outlet that the receivers would make an effort to contact all of their clients on the database prior to the sale. They will also give their customers the chance to decide whether or not their information will be included.

"While a potential sale may include customer information (amongst other things), the form and substance of any such sale that may take place is yet to be determined," Ferrier Hodgson stated. The company even added, "The receivers are aware of their obligations under the privacy legislation in Australia and New Zealand regarding the use and disclosure of personal information. Any sale which may take place in the future would not be in breach of those obligations".

Newstalk BZ reported that after its collapse in January, Dick Smith declared its plan to close all of its stores as receivers Ferrier Hodgson can't find a suitable buyer of the chain. An ad has even been posted in the Australian Financial Review asking expressions of the interest in the company's customer data.

Lawyers stated that it would be legal for its receivers to sell the database, even though an email to customers from the chain notes that it would not happen. And in behalf of all the receivers, Bell Gully's Tania Goatley said that it would be well-fitted within the law. And choices may include selling the group data that does not really indentify any one person or having consent from clients prior to the schedule of the sale.

However, Consumer New Zealand recommends that Dick Smith customers should unsubscribe from its mailing list. Chief Executive Sue Chetwin claimed that customers may be allowed to stop their information from being retailed if they decided to remove them from the mailing list before a sale pushes through, as claimed by The New Zealand Herald.

Meanwhile, the Privacy Commission already investigated the advertisement. Ferrier Hodgson also assured that it will fully comply with its obligations under the New Zealand and Australian Privacy Acts.

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