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Tipsheet

23andMe Filed for Bankruptcy. You Won't Believe What They're Doing Next.

23andMe Filed for Bankruptcy. You Won't Believe What They're Doing Next.
AP Photo/Jeff Chiu, File

Twenty-seven states and the District of Columbia are suing genetic testing company 23andMe to stop the sale of millions of users’ personal DNA information. The company recently filed for bankruptcy, as Townhall covered.

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The states took legal action this week in the U.S. Bankruptcy Court for the Eastern District of Missouri, arguing that 23andMe has “no right to sell their customers’ genetic identities to the highest bidder” unless the company “first obtain[s] express informed consent to the proposed transaction/transfer by each consumer impacted.” 

Approximately 15 million people have used 23andMe to trace their ancestry, among other things.

The states made it clear that they were “not objectively opposed to any sale” but that there are serious concerns about obtaining “informed consent from each customer” before any transfer of their personal data can occur. 

The states involved in the lawsuit are the following: Arizona, Colorado, Connecticut, the District of Columbia, Florida, Illinois, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Missouri, New Hampshire, New Mexico, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Utah, Vermont, Virginia, Washington, West Virginia and Wisconsin.

“23andMe cannot auction millions of people’s personal genetic information without their consent,” New York Attorney General Letitia James said in a statement. “New Yorkers and many others around the country trusted 23andMe with their private information, and they have a right to know what will be done with their information.” 

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In a statement to Fox Business, a 23andMe spokesperson said the arguments made by the states were “without merit.” 

“The sale is permitted under 23andMe privacy policies and applicable law,” the spokesperson said. “We required any bidder to adopt our policies and comply with applicable law as a condition to participating in our sales process. Customers will continue to have the same rights and protections in the hands of the winning bidder.” 

Last month, House Oversight announced that it would investigate the data privacy concerns of 23andMe’s bankruptcy filing. 

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