TORONTO – Toys “R” Us Canada made headlines in June when it announced the sale of its branding to a U.S. firm, leading many consumers to believe the deal was limited to the ownership of the retailer's name and mascot, Geoffrey the giraffe. However, alongside the branding, consumer data was also transferred.
The purchaser, an affiliate of Ad Populum—which manages brands like Party City, Chia Pet, and the Graceland attraction—gained access to customers' names, contact details, account information, transaction histories, and communications with Toys “R” Us Canada. Ad Populum did not clarify its plans for this data in email notifications sent to customers and avoided responding to inquiries from The Canadian Press regarding specific uses for the information.
Recently, Next Century, a subsidiary of Ad Populum, announced its plans to open Toys “R” Us Canada sections within Staples Canada stores starting November 14. This sale highlights a lesser-known aspect of corporate insolvencies, one that experts believe deserves more attention. As businesses recognize the value of customer data, its sale is becoming increasingly common.
Dina Kovacevic, editor of Insolvency Insider, remarked on the growing significance of data in insolvencies, stating, “Data is the currency. It’s going to get wild out there.” When companies face financial difficulties, they often seek buyers for their assets, and consumer data can provide a lucrative opportunity for potential purchasers.
Consumer data allows companies to bypass the lengthy process of building a customer base from scratch, making it easier to revamp a struggling business. Unfortunately, customers typically realize their data has been sold only when they receive a notification offering them a chance to request data deletion. Often, there is little public awareness surrounding these transactions unless consumers actively follow court records or news reports.
“Our system is not quite as transparent as the U.S.” noted Constantine Karbaliotis, counsel at nNovation LLP. Unlike in the United States, consumers in Canada often lack the opportunity for proactive involvement regarding data transfers from insolvent companies. Instead, they usually find out post-factum when they have the option to withdraw consent.
Chantal Bernier, a former interim privacy commissioner in Canada, recalled limited instances of public backlash regarding consumer data sales. She discussed a case where a luxury retailer acquired a lower-priced competitor, resulting in customer concerns about being targeted for upselling after the data transfer. Her client allowed customers to delete their data, reflecting a growing interest in data privacy among consumers.
Meanwhile, in the U.S., awareness surrounding data sales has increased due to notable incidents. Google recently offered US$10 million for consumer data from Spirit Airlines, which includes millions of email addresses and internal messages, raising concerns among labor unions and policymakers. Similarly, when the genetic testing firm 23andMe sought to sell its consumer data following bankruptcy, 27 states and the District of Columbia attempted to block the sale, emphasizing the sensitivity of genetic information.
Karbaliotis suggested that heightened consumer awareness may stem from recognizing the permanence of certain data types, such as genetic information. The potential repercussions of such transactions have begun to prompt individuals to consider the risks associated with sharing personal data. Kovacevic emphasized that cases like 23andMe’s sparked real concern when people saw personal data being commodified.
As the landscape changes, it becomes increasingly vital for consumers to reflect on the implications of sharing their information. Karbaliotis urged individuals to think beyond initial consent and consider the risks that may arise if the company involved experiences financial difficulties in the future. “Once you give someone information, you lose control over it,” he said, highlighting the importance of maintaining privacy through cautious data-sharing practices.
This report by The Canadian Press was published on November 8, 2026.
