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Enforcement ActionLow RiskMultistate

NY AG and 27 States Sue 23andMe to Block Genetic Data Auction

23andMe, Inc.June 10, 2025New York Attorney General

Consumers Affected

15,000,000

Summary

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.

Remedy

The attorneys general seek an injunction to block 23andMe’s planned auction of 15 million customers’ genetic data without consent, and to require compliance with state laws mandating express informed consent for the sale or transfer of sensitive genetic and health information.

Injunction

Contract Impact

In-house legal teams should review all vendor agreements involving the collection, storage, or sale of genetic, health, or other sensitive consumer data to ensure they include requirements for express informed consent from consumers before any transfer, sale, or sharing of such data. Clauses related to asset sales, data transfer in bankruptcy, and sensitive data handling should be updated to explicitly require consumer consent and compliance with applicable state genetic privacy laws. Additionally, teams should verify that contracts with DNA testing, health, or biotech vendors mandate notice to consumers about any planned data transfers and prohibit unauthorized sale of sensitive genetic information.

Contract Search Terms

genetic datahealth dataexpress informed consentdata saledata transfersensitive genetic informationasset sale data provisionsgenetic privacy compliance

Violation Types

Entity Details

Entity

23andMe, Inc.

Also known as: 23andMe

Industry

Healthcare

Multistate Coalition

Official Sources

Source Evidence

Title
"Attorney General James Sues 23andMe to Protect New Yorkers’ Genetic Data"
Event Date
"June 10, 2025"
Jurisdiction
"New York Attorney General Letitia James"
Event Type
"filed a lawsuit against 23andMe"
Entity Name
"23andMe, a popular direct-to-consumer DNA testing company"
Violation Types
"without their consent or knowledge"

Related Enforcement Actions

VA

23andMe, Inc.

$18.0M

Virginia Attorney General Jay Jones joined a coalition of 42 state attorneys general in a multistate settlement with 23andMe over a 2023 data breach that exposed the genetic data of approximately 6.9 million customers. The settlement requires 23andMe to pay $18 million to the states and $46.75 million to affected consumers, resolving allegations of inadequate security practices and delayed breach notification.

NJ

23andMe, Inc.

$18.0M

Attorney General Jennifer Davenport joined a bipartisan coalition of 42 attorneys general in announcing a settlement with the bankruptcy trustee for 23andMe, resolving allegations from a 2023 data breach that compromised genetic data of 6.9 million people worldwide, including nearly 150,000 in New Jersey. The settlement provides $18 million to states from available bankruptcy funds, plus enhanced data security and consumer deletion rights for the successor entity, 23andMe Research Institute.

CO

23andMe, Inc.

$18.0M

A coalition of 42 state attorneys general settled with the bankruptcy trustee for 23andMe over a 2023 data breach that exposed genetic data of 6.9 million customers. The states will receive $18 million from bankruptcy funds, and 23andMe agreed to enhanced data security requirements and consumer deletion rights as part of the asset sale to TTAM Research Institute.

MN

23andMe, Inc.

$18.0M

A coalition of 42 state attorneys general reached a settlement with the bankruptcy trustee for 23andMe over a 2023 data breach that compromised the genetic data of 6.9 million customers. The settlement provides $18 million from bankruptcy funds, with Minnesota receiving $514,871, and imposes data security requirements on the successor entity, 23andMe Research Institute.

FTC

23andMe, Inc.

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.

NY

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New York Attorney General Letitia James secured an $8 million settlement from VGW Holdings Pty. Ltd. and its affiliates for unlawfully operating online sweepstakes casinos — Chumba Casino, Global Poker, and Luckyland Slots — that allowed New Yorkers to play casino games with virtual coins exchangeable for cash or prizes. The OAG's June 2025 cease and desist letter stopped the company from offering virtual coin gambling in New York, and Governor Hochul signed a formal ban on sweepstakes casinos into law in December 2025. Under the settlement, VGW will pay $8 million in disgorgement, penalties, and costs; note this is an illegal-gambling enforcement action rather than a privacy matter, so no privacy violation taxonomy categories apply.