The purpose of this is so that if the business is being sold with good will
this is to show the prospective purchasers that there is a customer list
that goes with the business that is worth buying.
I would assume that if the business is not going to give them the customer
list along with the business when they sell it - then they customer won't
buy the business or they will purchase it at a reduced price.
The question is then presumably what conditions can be put on the use that
the information is to be put by the prospective customer.
I would have thought that the business being sold would also not want a
prospective customer to "steal" its customer database.
After all, posing as a prospective buyer could be a means of gaining access
to a competitor's customer database.
I have no experience of this but is this not sort of the thing that would be
looked at (ie the books) when a business is up for sale.
Nick Landau
----- Original Message -----
From: "Simon Howarth" <[log in to unmask]>
To: <[log in to unmask]>
Sent: Monday, January 22, 2007 11:37 AM
Subject: Re: [data-protection] DP Clause in Contract Agreement
>I don't like the disclosure to a *prospective* buyer or seller. An actual
> buyer or seller, maybe. But prospective? No way.
>
> Simon.
>
> -----Original Message-----
> From: This list is for those interested in Data Protection issues
> [mailto:[log in to unmask]] On Behalf Of Julie Gibbs
> Sent: 22 January 2007 11:13
> To: [log in to unmask]
> Subject: [data-protection] DP Clause in Contract Agreement
>
> A bit of Monday morning advice please.
>
> We are entering into an agreement with a supplier of personal security
> devices for lone workers. One of the Data Protection clauses in the
> agreement states that ".... will carry out the processing (as defined by
> the Act) of personal data transmitted by or on behalf of the client only
> to the extent necessary for the provision of the services and will not
> divulge the whole or any part of the personal data to any person
> except:...If ...... sells or buys any business or assets, in which case it
> may disclose personal data to the prospective seller or buyer of such
> business or assets."
>
> Should we allow this clause? My own view is that it is ok provided the
> data subjects are made aware of what might happen to their personal data
> and that it will be used for the same purpose.
>
> Thanks in advance.
>
> Julie
>
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