Introduction to the Lawsuit
Twenty-seven states and the District of Columbia on Monday filed a lawsuit in bankruptcy court seeking to block the sale of personal genetic data by 23andMe without customer consent. The lawsuit comes as a biotechnology company seeks the court’s approval to buy the struggling firm.
Concerns Over Genetic Data Privacy
Biological samples, DNA data, health-related traits and medical records are too sensitive to be sold without each person’s express, informed consent, Oregon Attorney General Dan Rayfield said in a news release about the lawsuit. Customers should have the right to control such deeply personal information and it cannot be sold like ordinary property, it said.
Background of 23andMe
23andMe customers use saliva-based DNA testing kits to learn about their ancestry and find long-lost relatives. Founded in 2006, the company also conducted health research and drug development. But it struggled to find a profitable business model since going public in 2021. In March it laid off 40% of its staff and filed for Chapter 11 bankruptcy protection in the Eastern District of Missouri, raising concerns about the safety of customer data.
Proposed Sale and Privacy Concerns
Regeneron Pharmaceuticals said last month it aimed to buy the company for $256 million. Regeneron said it would comply with 23andMe’s privacy policies and applicable law. It said it would process all customer personal data in accordance with the consents, privacy policies and statements, terms of service, and notices currently in effect and have security controls in place designed to protect such data.
Court-Appointed Ombudsman
A court-appointed, independent consumer privacy ombudsman was due to examine the proposed sale and how it might affect consumer privacy and report to the court by Tuesday.
Conclusion
The lawsuit filed by 27 states and the District of Columbia against 23andMe highlights the importance of genetic data privacy and the need for companies to obtain explicit consent from customers before selling their personal information. As the case proceeds, it will be crucial to ensure that the rights of customers are protected and that their sensitive data is not compromised.
FAQs
- Q: What is the lawsuit about?
A: The lawsuit is about blocking the sale of personal genetic data by 23andMe without customer consent. - Q: How many states are involved in the lawsuit?
A: 27 states and the District of Columbia are involved in the lawsuit. - Q: What company is trying to buy 23andMe?
A: Regeneron Pharmaceuticals is trying to buy 23andMe for $256 million. - Q: What is the concern about the sale?
A: The concern is that biological samples, DNA data, health-related traits, and medical records are too sensitive to be sold without each person’s express, informed consent.
