After Clear, a murky situation for customers and employees

So the fast-track airline security company Clear has abruptly ceased operations. Now what?

Other than the inconvenience to customers who had counted on them, the real questions start. And so far, there aren’t a lot of answers.

One of the first issues for many past customers is whether or not they will get their money back. Despite the fact that according to the Wall Street Journal the company had raised over $44 million just last year, Clear states on what’s left of their site that “at the present time” they “cannot issue refunds.”

Customers who have paid with credit cards can of course dispute the charges, but customers who enrolled several months ago — and paid their bills already, will have a harder time of it. And anyone who paid with a check is almost certainly out of luck.

Employees have noted on Tripso.com that they were given no notice, in fact, and while I hope that they will be paid by Clear, that also seems unlikely. (At time of writing, the company had not filed formally for bankruptcy.)

Airports across the country are also indicating they haven’t heard anything from the company about picking their equipment up. In theory, I suppose the airports could keep the equipment for nonpayment of rent. If Clear is not refunding customers, there seems little chance that airports will see any money from their rental contracts.

And perhaps the biggest issue, what happens to all the personal information? Verified Identity Pass, Inc, Clear’s parent company, has everything from passport numbers to iris scans to fingerprints for its former customers. At one point Clear claimed it had over 250,000 members.

Again on their site, the company states:

Applicant and Member data is currently secured in accordance with the Transportation Security Administration’s Security, Privacy and Compliance Standards. Verified Identity Pass, Inc. will continue to secure such information and will take appropriate steps to delete the information.

First, there is the question, is any data truly deleted these days? But in a bankruptcy filing, couldn’t that information be viewed as an asset? Ditto, if some investors or other company wants to take over the operation, wouldn’t they want to have that data?

No doubt the answers to these and other questions will emerge over time, but for the moment, Clear’s demise is a murky mess.

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