Federal Trade Commission Chairman Andrew N. Ferguson issued a letter to the U.S. Trustee overseeing the 23andMe bankruptcy proceeding, expressing concerns about the potential sale or transfer of consumers' personal genetic data. The letter underscores the importance of companies honoring their privacy promises to consumers, particularly regarding sensitive information, during bankruptcy proceedings.
In-house legal teams should review vendor agreements involving data sharing, customer terms of service, and data processing addendums for clauses related to data assignment, consent for transfers, and privacy policy integration. Specific attention should be paid to provisions governing asset sales in bankruptcy, ensuring that privacy promises are binding on successors and that consumer consent is obtained before transferring sensitive genetic data. Consider amending contracts to include explicit restrictions on data sales without user approval, audit rights for data handling, and clear breach notification procedures for genetic information.
Entity
23andMe, Inc.
Also known as: 23andMe
Industry
HealthcareOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2025/03/federal-trade-commission-chairman-andrew-n-ferguson-issues-letter-23andme-bankruptcy-impact
chairman ferguson letter regarding 23andme
https://www.ftc.gov/legal-library/browse/cases-proceedings/staff-letters/chairman-ferguson-letter-regarding-23andme
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"23andMe"
"Many Americans are concerned about the impact of a potential sale of their personal data"
"Today, Federal Trade Commission Chairman Andrew N Ferguson issued a letter to the U.S. Trustee regarding the 23andMe bankruptcy proceeding, expressing the concerns American consumers have with the potential sale or transfer of their 23andMe data."
New York Attorney General Letitia James, joined by 27 other state attorneys general and the District of Columbia, filed a lawsuit against 23andMe to block the company’s planned sale of 15 million customers’ genetic and health data without their consent or knowledge. The coalition argues 23andMe must comply with state laws requiring express informed consent for the sale or transfer of sensitive genetic data. The lawsuit seeks to prevent misuse, exposure in future breaches, and unauthorized use of customers’ private genetic information.
The FTC sent warning letters to 12 companies offering 'nudify' tools that generate nonconsensual intimate images, for failing to comply with the TAKE IT DOWN Act (TIDA) by not providing a mechanism for victims to request removal of such content. The letters urge immediate compliance with TIDA, which requires platforms to remove nonconsensual intimate images within 48 hours of a valid request. Noncompliant companies may face future legal action and civil penalties of up to $53,088 per violation.
The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.
$6.5M
A federal court held Cliq Inc. and its executives Andrew Phillips and John Blaugrund in civil contempt for multiple violations of a 2015 FTC order requiring the payment processor to prevent enabling consumer fraud. The court found the defendants facilitated fraud by processing transactions for high-risk merchants, avoiding fraud monitoring, failing to conduct required underwriting, and ignoring chargeback thresholds. The court imposed $6.5 million in civil contempt sanctions against the defendants.
$795.8M
The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.
The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.