Twenty-seven states and the District of Columbia have filed a lawsuit in bankruptcy court to block the sale of personal genetic data by 23andMe without customer consent. This legal action coincides with the company’s efforts to gain court approval for its acquisition by Regeneron Pharmaceuticals, which has proposed a $256 million bid. Oregon Attorney General Dan Rayfield emphasized the sensitivity of biological samples, DNA data, and medical records, asserting that such information cannot be treated like ordinary property and should only be shared with explicit customer consent.
23andMe, established in 2006, gained popularity for its saliva-based DNA testing kits used for ancestry and family connections. Although the company ventured into health research and drug development, it has struggled financially since going public in 2021. In March, the company laid off 40% of its workforce and filed for Chapter 11 bankruptcy in Missouri, raising significant concerns regarding customer data security.
Regeneron has stated that it intends to adhere to 23andMe’s privacy policies and relevant laws, ensuring that customer data processing aligns with existing consent and security measures. Meanwhile, an independent consumer privacy ombudsman has been appointed by the court to evaluate the proposed sale’s implications for consumer privacy, with a report due soon.
The lawsuit highlights the ongoing concerns over data privacy in the biotechnology sector, particularly regarding how companies manage and protect sensitive personal information in the face of financial struggles. This legal challenge underscores the necessity for clear consent protocols and consumer control over genetic data.
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