Feds voice concern about fate of 23andMe data

Since genetics testing firm 23andMe filed for Chapter 11 bankruptcy protection and said it would seek to sell its assets, consumer advocates have voiced concern that the genetic data of millions of Americans could be purchased by unknown buyers.

This week the head of the Federal Trade Commission added his voice to those concerns. FTC Chairman Andrew Ferguson issued a letter to the U.S. Trustee regarding the 23andMe bankruptcy proceeding, expressing the concerns many American consumers have with the potential sale or transfer of their 23andMe data.

“Many Americans are concerned about the impact of a potential sale of their personal data, and I understand those concerns,” Ferguson wrote. “Consumers should be able to trust that companies will keep their promises, including when it comes to handling of sensitive information.”

In his letter, Ferguson pointed out that 23andMe made direct representations to its users about how it uses, discloses, and protects their personal information, including how personal information will be safeguarded in the event of bankruptcy.

Promises must be kept

He also noted that 23andMe promised its customers that they are in control of their data, and that users can decide how their information is used and for what purposes.

“The FTC believes that, consistent with Section 363(b)(1) of the Bankruptcy Code, these types of promises to consumers must be kept,” Furguson wrote.

“This means that any bankruptcy-related sale or transfer involving 23andMe users’ personal information and biological samples will be subject to the representations the company has made to users about both privacy and data security, and which users relied upon in providing their sensitive data to the company.”

Ferguson concluded by saying that any purchaser of 23andMe data should expressly agree to be bound by and adhere to the terms of 23andMe’s privacy policies and applicable law, including as to any changes it subsequently makes to those policies.