States unite to block 23andMe from selling genetic data

In a significant legal move, twenty-seven states and the District of Columbia have taken action against 23andMe, a genetic-testing company that has struggled financially. The lawsuit was filed in bankruptcy court as the company seeks a buyer after declaring bankruptcy earlier this year, making it vulnerable to the sale of sensitive consumer data without their consent. The complaint highlights that genetic data, biological samples, health-related traits, and medical records constitute deeply personal information that cannot be sold like ordinary property without express, informed consent from individuals. Oregon's Attorney General, Dan Rayfield, emphasized that consumers should retain control over such sensitive information and that this sale raises serious ethical concerns. As part of their legal strategy, the plaintiffs argue that the sale of consumer data violates existing privacy laws and consumer rights. They are also leveraging the company's recent financial troubles to reinforce their claim that consumers did not consent to their data being sold. In a high-stakes acquisition, Regeneron Pharmaceuticals expressed interest in acquiring 23andMe for $256 million, asserting compliance with the company’s privacy policies and legal obligations. While a court-appointed independent consumer privacy ombudsman is evaluating the sale's potential impact on consumer privacy, many former customers are voicing concerns about the accessibility and management of their data during the bankruptcy process. Several customers have reported difficulties accessing their accounts or deleting personal data due to verification issues following the bankruptcy filing. The attorney general from Pennsylvania, Dave Sunday, has joined the multistate lawsuit, actively encouraging residents to consider deleting their data from 23andMe's database amid the ongoing uncertainty surrounding the company’s future and data management practices.