23andMe Bankruptcy Sparks Genetic Data Privacy Concerns as Court Approves Asset Sale

A U.S. judge has authorized 23andMe to sell genetic data from 15 million users, prompting calls for data deletion and scrutiny of privacy risks.

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.