Judge Won’t Set Conditions on Sale of Toysmart Data

A bankruptcy judge in Boston declined to place conditions on the proposed sale of the customer list of bankrupt Internet toy retailer Toysmart.com. U.S. Bankruptcy Judge Carol Kenner said she would not set any conditions because there was no buyer in sight for the list. She left the door open to critics of the proposed sale, saying they could register their objections if a buyer appears. The proposed sale of the Waltham, Mass.-based company’s customer list, which contains names and data on about 250,000 people, has sparked criticism both from the Federal Trade Commission and state attorneys general. The company Web site had promised customers that information would be kept confidential. But the list is now being considered an asset that the ailing company hopes to sell to help pay its debts. The company, majority-owned by Walt Disney Co., agreed to FTC conditions on any potential sale, including a requirement that the list be sold only to a buyer in a related market who agrees to abide by terms of the original Toysmart.com privacy promise.