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1997 |
David Lord, former college football player, come to work for Holt Education Outlet in Waltham, Mass. |
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December 1998 |
Lord and Stan Fung (Zero Stage Capital) buy Holt Education Outlet and rename it "Toysmart." (Lorek) Toysmart focuses on providing customers with access to 75,000 toys through online catalogue. (Nashelsky). |
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August 1999 |
Toysmart turns down a 25 million offer from an investment _rm. Accepts Disney offer of 20 million in cash and 25 million in advertising, |
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September 1999 |
Toysmart post privacy policy which promises not to release information collected on customers to third parties. At about this time, Toysmart receives permission from TRUSTe to display its seal certifying that Toysmart has adopted TRUSTe procedures for protecting privacy and maintaining information security. |
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Christmas 1999 |
After disappointing Christmas toy sales, Disney withdraws its support from Toysmart. |
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April 2000 |
COPPA goes into effect. (Childhood Online Privacy Protection Act) Prohibits soliciting information from children under 13 without parental consent. |
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June 2000 (approximately) |
Toysmart erases 1500 to 2000 customer profiles from data base to comply with COPPA (information collected after law went into effect) |
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May 22, 2000 |
Toysmart announces that it is closing its operations and selling its assets. Its initial intention is to reorganize and start over. |
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June 9, 2000 |
Toysmart creditors file an involuntary bankruptcy petition rejecting Toysmart proposal to reorganize. They petition the U.S. Trustee to form a Creditors Committee to oversee the liquidation of Toysmart assets. |
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June 23, 2000 |
Toysmart consents to involuntary bankruptcy petition. Files Chapter 11 bankruptcy. It rejects reorganization and works with lawyers and the Recovery Group to liquidate its assets. |
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June 2000 |
Recovery Group analyzes Toysmart assets and identifies its customer information data base as one of its most valuable assets (a "crown jewel") |
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June 9, 2000 |
Disney subsidiary, acting as Toysmart creditor, places ads in Wall Street Journal and Boston Globe offer Toysmart customer data base for sale. |
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After June 9, 2000 |
TRUSTe discovers Toysmart ad. Informs FTC (Federal Trade Commission) that selling of customer data base to third parties violates TRUSTe guidelines and violates Toysmart's promises to customers(13,2) |
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July 10, 2000 |
FTC _les complaint against Toysmart "seeking injunctive and declaratory relief to prevent the sale of confidential, personal customer information." District attorneys of 41 states also participate in complaint against Toysmart. |
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July 27, 2000 |
Hearing by U.S. Bankruptcy Court on Toysmart case. Includes Toysmart proposal to sell customer data base. |
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Late July 2000 |
FTC and Toysmart reach settlement. Toysmart can only sell customer information to a third part who shares Toysmart values and agrees to carry out same privacy policy as Toysmart. |
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Late July 2000 |
Federal bankruptcy court rejects FTC and Toysmart settlement. Suggests waiting to see if a buyer comes forth. |
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January 10, 2001 |
Walt Disney Internet subsidiary (Buena Vista Toy Company?) pays Toysmart $50,000 for its data base. Toysmart then destroys the data base and provides confirming affidavit.(18,2) |
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