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Federal Trade Commission lawyers are suggesting that commissioners let failed online toy retailer Toysmart.com Inc. sell its customer list with certain conditions on its use by the buyer.

FTC commissioners are set to vote today on the settlement according to people familiar with the matter, the Wall Street Journal said.

On July 10, the FTC said the Waltham, Mass.-based Internet firm, which was founded in 1997 and ceased operations in May, misrepresented itself when it tried to sell confidential, personal information collected from its customers.

The company, which is 60 percent owned by Walt Disney Co., placed an ad in the Journal last month offering its customer lists and databases for sale.

But Toysmart's privacy policy, posted on its Web site, stated that "Personal information...such as name, address, billing information and shopping practices, is never shared with a third party."

The FTC needs to file any objections with the U.S. Bankruptcy Court in Boston charged with disposing of the company's assets by the end of the day Friday, the Journal said. Previously, commissioners had voted to ask the court to block the sale of the list because of privacy concerns if no settlement could be reached, the Journal said.