Overview

• 23andMe has received court approval to sell its genetic and ancestry data as part of its Chapter 11 bankruptcy proceedings, with bids due by May 7, 2025.
• Privacy advocates and state attorneys general are urging users to delete their genetic data to mitigate risks of misuse under potential new ownership.
• The U.S. Trustee has requested the appointment of a consumer privacy ombudsman to evaluate the potential harms and recommend safeguards for the data sale.
• Concerns persist over the permanent nature of genetic data and the lack of robust U.S. privacy laws, which allow sensitive information to be sold during bankruptcy.
• While 23andMe has pledged to maintain data privacy protections, its privacy policy permits changes to these measures, raising questions about future handling of user data.