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Dozens of States File Lawsuit to Prevent Sale of 23andMe Genetic Data Without Customer Approval


On Monday, twenty-seven states and the District of Columbia filed a lawsuit in bankruptcy court to prevent 23andMe from selling personal genetic data without customer consent. The legal action arises as the biotechnology company seeks court approval for its acquisition by Regeneron Pharmaceuticals amid bankruptcy proceedings. Oregon Attorney General Dan Rayfield stated that personal biological samples, DNA, health data, and medical records are too sensitive to be sold without explicit informed consent from customers, arguing that individuals should have control over such deeply personal information.

23andMe, known for its saliva-based DNA testing kits that provide insights into ancestry and potential genetic health risks, has struggled financially since going public in 2021. The company faced considerable challenges, recently laying off 40% of its workforce and filing for Chapter 11 bankruptcy protection in March. The sale to Regeneron, valued at $256 million, has raised concerns regarding the safeguarding of customer data.

Regeneron has promised to adhere to 23andMe’s privacy policies and applicable laws, stating it will handle all personal data in accordance with current consents, privacy policies, and security measures designed to protect that information. As part of the bankruptcy proceedings, a court-appointed consumer privacy ombudsman will evaluate the proposed sale’s impact on consumer privacy, with a report due to the court by Tuesday. The lawsuit emphasizes the importance of customer autonomy over personal genetic information and seeks to block actions that could endanger privacy rights.

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