Congress Seeks Answers on 23andMe Sale & Data Privacy Risks
▼ Summary
– US Reps. Ocasio-Cortez and Schakowsky, along with 20 other Democrats, sent letters to potential buyers Regeneron and TTAM demanding clarity on 23andMe’s consumer data privacy policies post-acquisition.
– 23andMe filed for bankruptcy in March after years of financial struggles, leading to CEO Anne Wojcicki’s resignation and the company’s assets being put up for sale.
– Regeneron initially won the bankruptcy auction with a $256 million bid, but Wojcicki later countered with a $305 million offer through TTAM, prompting the court to reopen the sale process.
– Lawmakers are concerned about how genetic data will be used, including potential sharing with law enforcement, AI training, and third-party access, and seek assurances on existing privacy protections.
– Over two dozen states and DC sued 23andMe, arguing the company cannot auction customers’ sensitive genetic data without their consent or knowledge.
Lawmakers demand transparency from potential buyers of 23andMe amid growing concerns over genetic data privacy. Two dozen congressional representatives, led by Reps. Alexandria Ocasio-Cortez and Jan Schakowsky, have pressed bidders for the struggling genetic testing company to clarify how they will handle sensitive customer information if the sale proceeds.
The letters, addressed to Regeneron Pharmaceuticals and TTAM Research Institute, question whether the firms will maintain existing privacy protections, including allowing users to delete their data and restricting law enforcement access without a warrant. The lawmakers also seek assurances that customers will be promptly notified about any ownership changes.
23andMe’s financial troubles came to a head earlier this year when it filed for bankruptcy after failing to achieve profitability despite selling over 12 million DNA test kits. The company’s former CEO, Anne Wojcicki, attempted to take it private, but her proposal was rejected by the board. Since then, two competing bids have emerged, one from Regeneron, which offered $256 million in a bankruptcy auction, and another from Wojcicki herself through a newly formed nonprofit, TTAM Research Institute, which bid $305 million. A federal judge has reopened the sale process to consider both offers.
The potential acquisition raises significant concerns about the fate of 23andMe’s massive genetic database, which includes ancestry and health insights from millions of users. Currently, customers can opt into medical research or request complete data deletion, but lawmakers want guarantees that these policies will remain intact under new ownership.
Beyond privacy protections, the congressional letters probe whether genetic data could be shared with law enforcement, immigration authorities, or AI developers. They also demand full disclosure of third parties with access to the data, including past collaborators like pharmaceutical giant GlaxoSmithKline.
The scrutiny comes as 23andMe faces legal challenges from multiple states alleging the company unlawfully included customer genetic data in its bankruptcy sale without consent. Meanwhile, recent testimony before the House Oversight Committee revealed that 1.9 million users, roughly 15% of the customer base, have requested data deletion since the bankruptcy filing.
With responses due by June 26, the outcome could shape the future of consumer genetic testing and set precedents for how sensitive biometric data is handled in corporate transactions. The stakes are high, as millions of people’s most personal information hangs in the balance.
(Source: Wired)
