AUSTIN, Texas (Legal Newsline)- National electronics retailer RadioShack Corp. has agreed to pay the Texas attorney general's office $630,000 to settle an investigation into the company's identity-theft protection practices.
The settlement announced by Attorney General Greg Abbott provides $50,000 to cover attorneys' fees, while $580,000 of the settlement will pay for future investigations by the AG's office related to identity theft.
Fort Worth-based RadioShack, in addition to the monetary settlement, has agreed to overhaul its information security requirements and add an identity-theft protection training program for new employees.
The attorney general's office began investigating RadioShack after learning that one of its Texas stores dumped sensitive customer records into a trash can, which is against state law.
The records contained consumer data, Social Security numbers, debit and credit information and personal contact information, the attorney general's office said.
"Recognizing that identity theft is one of the nation's fastest growing criminal enterprises, the Texas Legislature passed laws to protect Texans from this crime," Abbott said in a statement.
Despite the risks to consumers, the incident has not produced an actual case of identity theft.
Abbott has reached similar settlements over records disposal with other companies, including Austin-based pawn and payday lender EZCORP Inc.
From Legal Newsline: Reach reporter Chris Rizo at chrisrizo@legalnewsline.com.
