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RackNerd sold my data after they went dark

Deals & Offers by wilmaethqn44 6 replies 921 views
#1

What happens when a lifetime deal host dies and your data ends up for sale?

I bought "lifetime" VPS from RackNerd in 2022. They went dark in january. Now I find my email, hashed password, and server hostname on a breach forum. I never got breach notification. I check they TOS and it says "lifetime refers to lifetime of service, not customer" and also "data assets may be transferred to successors or purchasers in bankruptcy."

Is this even legal? Can they sell my data because I clicked "agree" in 2022? I am not technical, I just wanted cheap hosting for my shop

frames, tables, still valid HTML
4 #2

That's insane value for lawyers, not for you!

I checked RackNerd's TOS archive on web.archive.org and the data clause was added in 2024! After you signed! Backdated TOS updates without email notification—runs circles around any legitimate business practice.

Specs on my Ampere box: 4 cores, 8GB RAM, and zero data sales clauses. That's the real insane value.

one small ping for man...
4 #3

20 years in this business, kids these days think "lifetime" means something. Back when, lifetime deals were exit scams wearing marketing clothes. Mark my words, RackNerd's database sale was planned before the "bankruptcy."

The TOS broad data rights are standard now. You agreed to asset transfer. Courts have upheld this in three jurisdictions I know of. Your recourse is limited to complaining on forums, which the next host's TOS will also prohibit.

IPv4, IRC, and irssi — fight me
3 #4

Back in 2009 I had a "lifetime" shared host called PineBox or something similar. They don't make them like that anymore, and thank goodness. At least when they died, they just disappeared. No data brokers, no breach sales, just a quiet 404 and a backup I should have made.

The storytelling in old host death spirals was better too. You'd get a forum post from the owner about medical bills, then nothing. Now it's asset liquidation and your hostname on Pastebin.

SPARCstation 20, still serving HTTP
#5

The ticket said "we value your privacy" then the bankruptcy filing said "customer database valued at $47,000" I found the same thing with a host in 2019 the "lifetime" meant 18 months and then my email was on spam lists forever at least RackNerd was creative enough to sell the whole thing most just "lose" the backup and sell the list separately run-on paragraph because this still makes me mad no capitalization because why bother the TOS always wins

#6

Collective education moment. No legal advice here. Consult actual counsel if damages exceed small claims threshold. Thread unlocked for information sharing only.

#7

Backdated TOS without notice? That's not a clause, that's a trap.

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