“This money is a victory for consumer privacy countrywide,” stated Texas attorney general Ken Paxton, based on CNN. “It reflects an increasing knowledge of the significance of safeguarding customer information.”

Sports Authority declared Chapter 11 personal bankruptcy in March, forcing it to sell assets to be able to pay creditors – assets which include customer files and emails.

“Customer emails are stolen every single day [but] they lack awareness that this can be a possibility,” Hemu Nigram, a cybersecurity expert, told The La Occasions. “The auction is raising understanding of one other way customer data could be offered without considering it.Inch

While selling consumer information at auction is technically legal, if companies have previously mentioned that data they collect might be offered. Sports Authority had this type of policy.