26 states and District of Columbia sue to stop sale of 23andMe genetic data

The attorneys general of 26 states and the District of Columbia have filed suit to prevent the sale of the genetic data of millions of 23andMe customers at auction.

The genetics and health company filed for voluntary Chapter 11 bankruptcy in March, when it states that “your genetic data will not be shared with employers, insurance companies, or public databases without your explicit consent.”

The top law enforcement officials of 23 states claim in their suit that this is not enough and 23andMe can’t sell the data.

In a court filing, the attorneys general said that 23andMe has “no right to sell their customers’ genetic identities to the highest bidder, unless the Debtors first obtain express informed consent to the proposed transaction/transfer by each consumer impacted.”

Oregon Attorney General Dan Rayfield, who represents one of the suing states, said that this information “isn’t just data – it’s your DNA. It’s personal, permanent, and deeply private.”

“People did not submit their personal data to 23andMe thinking their genetic blueprint would later be sold off to the highest bidder. We’re standing up in court to make sure Oregonians – and millions of others – keep the right to control their own genetic information,” he said in a press filing. The attorneys general disagree.

“Just because the new owner retains the website and agrees to follow the Debtors’ same privacy policies and terms of use does not magically transform this sale into a ’change in ownership.’ The Customer Data – the core asset of the company – is being sold, transferred, and disclosed here, even if the Asset Purchase Agreement says otherwise,” the plaintiffs wrote in the filing.

In the new auction, Regeneron will have a chance to counter with a bid of at least $315 million, after which Ms. Wojcicki’s group will be able to make their own counter-bid. If they do so, Regeneron has the right to make the final bid of the second auction, according to Bloomberg.