Comment Same can happen at a cloud provider... (Score 1) 262
One scenario that I worry about with cloud providers is exactly this. The provider goes bankrupt, sells all data to someone else, and they now have all the servers and can use the container information, free, clear, with nothing the clients of the former cloud provider able to do about it legally, barring copyright violations.
Both Borders and RS both show a lesson -- yes, there is a privacy policy with company "A", but when the servers get under the ownership of a new company, that policy is out the window, and the data can be used for anything that the new owners desire. Multi-TB torrent? Perfectly legal.
If a cloud provider changes hands, I can see a new company digging through data just to extort people. Say they find a sex toy maker's customer list on a server. They can then send out a note that all customers of this maker will have their named published unless they "buy into" a privacy policy (removing the name from the list) for the low price of $99.99. Since the new company 100% owns the data, free and clear, this is perfectly legal.