States Sue 23andMe Over Genetic Data Privacy

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 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 on 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.

Independent Review of the Sale

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 the 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 use of genetic testing kits becomes more widespread, it is crucial for companies to prioritize data protection and transparency to maintain public trust.

FAQs

• Q: Why did 27 states and the District of Columbia file a lawsuit against 23andMe?
  A: They filed the lawsuit to block the sale of personal genetic data without customer consent.
• Q: What is 23andMe, and what services does it offer?
  A: 23andMe is a biotechnology company that provides saliva-based DNA testing kits for ancestry and health research.
• Q: Who is proposing to buy 23andMe?
  A: Regeneron Pharmaceuticals is proposing to buy the company for $256 million.
• Q: What measures will Regeneron take to protect customer data?
  A: Regeneron says it will comply with 23andMe’s privacy policies and applicable law, and have security controls in place to protect customer data.