What kind of privacy protections should customers of an online dating service have when that service goes through bankruptcy? A bankruptcy trustee has proposed the sale of True.com’s 43 million-member database, and a hearing on Texas Attorney General Greg Abbott’s objection to the sale is set for Oct. 25.
The OAG filed its objection on Oct. 9 about the sale of the database and web site, which are owned by Plano-based True Beginnings. True Beginnings filed for Chapter 11 bankruptcy protection in August 2012 in the U.S. Bankruptcy Court in the Eastern District of Texas in Sherman, In Re True Beginnings, LLC.
OAG spokeswoman Lauren Bean writes in an email that she “doubts” the AG will comment beyond a statement he released, which says: “At a time when privacy is an issue of grave concern to so many, we are taking legal action to prevent an online dating service from selling more than 2 million Texans’ personal information without their consent. The proper course is for True.com and its bankruptcy trustee to seek the customers’ permission before selling their private information to a third party — and that’s exactly what our legal action asks the bankruptcy court to require before the case proceeds.”
Christopher Moser, a partner in Dallas’ Quilling, Selander, Lownds, Winslett & Moser, who serves as trustee in the bankruptcy case, did not return a call seeking comment. Eric Liepins, a Dallas solo who represents the company that owns the website, also did not return a call.
The objection also states that the trustee has agreed “that Customers’ financial information will not be transferred” but warns, “The Attorney General reserves the right to further object on this issue if this is not the case.”