States Sue Over 23andMe’s Unapproved Data Sales

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    PORTLAND, Ore. — A legal objection was raised on Monday by 27 states and the District of Columbia in an attempt to halt the sale of personal genetic data by the firm 23andMe in a bankruptcy court. This move seeks to ensure that such sensitive information is not traded without the express consent of the individuals involved. The legal action is in response to an acquisition bid by a biotechnology company for the financially troubled firm.

    Oregon Attorney General Dan Rayfield emphasized the criticality of informed consent when dealing with biological samples, DNA data, health traits, and medical records. In a recent statement, Rayfield stressed that this type of sensitive data cannot be treated as regular property and underscored individuals’ rights to exert control over such deeply personal information.

    23andMe, a company since 2006, allows users to explore their ancestry and reconnect with relatives through saliva-based DNA tests. While the company also ventured into health research and drug development, it has encountered difficulties in establishing a sustainable business model after its public listing in 2021. This year, 23andMe announced a significant workforce reduction, shedding 40% of its employees. The company filed for Chapter 11 bankruptcy protection in Missouri, sparking concerns about data privacy for their customers.

    Regeneron Pharmaceuticals unveiled intentions last month to purchase the struggling company in a $256 million deal. The pharmaceutical firm has assured that it plans to adhere to 23andMe’s existing privacy policies and legal stipulations, asserting that it will handle customer data responsibly, in alignment with consents, privacy agreements, and terms currently in force. Regeneron also mentioned instituting security measures aimed at safeguarding such data.

    An independent consumer privacy ombudsman was tasked with reviewing the ramifications of the proposed sale on consumer privacy, with plans to present findings to the court by Tuesday. The outcome could influence the future handling of personal genetic information and safeguard consumer interests.