Twenty-seven states and the District of Columbia jointly filed a lawsuit in a bankruptcy court on Monday, demanding that the genetic testing company 23andMe be prevented from selling personal genetic data without the consent of its customers. The lawsuit points out that biological samples, DNA data and medical information are extremely sensitive and can only be traded with the explicit informed consent of the user. The Oregon Attorney General emphasized that such in-depth personal information should not be sold at will as ordinary assets.
23andMe was founded in 2006, mainly engaged in ancestral origin analysis and health research. However, due to business model difficulties, it filed for bankruptcy protection in March this year and laid off 40% of its staff. Currently, Regeneron Pharmaceuticals plans to acquire the company for $256 million and has committed to complying with the existing privacy policy. The court has appointed an independent privacy monitor to assess the impact of the transaction on consumer data, and the report will be submitted on Tuesday.
This lawsuit highlights the urgency of protecting the privacy of genetic data. With the frequent mergers and acquisitions of biotech companies, how to ensure users’ control over their own genetic information has become a regulatory focus. The ruling of the bankruptcy court may set an important precedent for such transactions.
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