Federal Bankruptcy Judge Rejects FTC Agreement With Toysmart.com

A federal bankruptcy judge rejected the Federal Trade Commission's agreement with Toysmart.com Thursday, casting aside restrictions on a prospective buyer for the online retailer's most valuable and controversial asset, a list of personal information on an estimated 190,000 customers. The company gathered the data while promising to keep it in confidence.

Judge Carol Kenner of the U.S. Bankruptcy Court in Boston dismissed the agreement, which listed restrictions on the sale of the list including one that the buyer would be "family friendly." She, however, did not preclude a sale of the data.

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