On Monday, twenty-seven states and the District of Columbia filed a lawsuit in bankruptcy court to prevent 23andMe from selling personal genetic data without customer consent. Oregon Attorney General Dan Rayfield emphasized the sensitivity of biological samples, DNA data, health-related traits, and medical records, arguing that such information should not be treated as ordinary property and must be protected by individuals’ express, informed consent.
23andMe, founded in 2006, gained popularity for its saliva-based DNA testing kits that inform customers about their ancestry and potential relatives. However, the company has struggled to maintain a profitable business model since going public in 2021, leading to a significant downsizing, including a 40% workforce reduction, and its subsequent Chapter 11 bankruptcy filing in the Eastern District of Missouri. This situation raised significant concerns regarding the security of customers’ personal data.
In the context of this bankruptcy, Regeneron Pharmaceuticals expressed interest in purchasing 23andMe for $256 million. Regeneron assured that it would adhere to 23andMe’s privacy policies and all relevant laws, committing to process personal data in accordance with existing consents and terms, and to implement robust security controls.
An independent consumer privacy ombudsman appointed by the court is expected to evaluate the implications of the sale for consumer privacy, providing a report by Tuesday. The outcome of this lawsuit could set important precedents regarding data privacy and the control customers have over their personal information in the biotechnology industry.
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