Texas Attorney General Ken Paxton filed a motion to appoint a Consumer Privacy Ombudsman in the Chapter 11 bankruptcy case of 23andMe to protect the sensitive genetic and personal data of Texans. The genetic testing company seeks to sell assets that may include genetic data, health information, and personally identifiable information. The AG's office is also informing Texans of their rights under Texas law to request deletion of their data and genetic samples.
The AG is seeking court appointment of a Consumer Privacy Ombudsman to oversee the protection of consumer data during bankruptcy proceedings and ensure that Texans' data deletion rights under Texas law are respected.
In-house legal teams should review vendor agreements with genetic testing, health data, or consumer data providers to ensure compliance with state data privacy laws, including explicit data deletion and sample destruction rights for consumers. Contracts should prohibit unauthorized sale or transfer of sensitive genetic, health, or children’s data, especially in the event of a vendor bankruptcy or asset sale, and require vendors to comply with regulatory oversight or appoint privacy ombudsmen in such scenarios. Teams should also verify that contracts include provisions for consumers to opt out of research use and revoke data consent, aligning with Texas and other state privacy law requirements.
Entity
23andMe
Industry
Healthcare"23andMe"
"Texas Direct-to-Consumer Genetic Testing Act"
"Texas Data Privacy and Security Act"
"23andMe seeks to sell unspecified assets that potentially include the sensitive genetic data of adults and children, health information, and other personally identifiable information"
"filed a motion to appoint a Consumer Privacy Ombudsman in the 23andMe bankruptcy case"
"Texas consumers have the right to request that their data be deleted from 23andMe’s database and that the genetic sample or results be destroyed"
$663K
Attorney General Jay Jones joined 42 attorneys general in a multistate settlement with 23andMe's bankruptcy trustee over a 2023 data breach that compromised genetic data of nearly 7 million customers. The settlement includes $150 million in allowed claims, with immediate recovery of $18 million from bankruptcy funds, of which Virginia receives $662,649. The settlement also requires enhanced data security measures and consumer protections for the new entity, 23andMe Research Institute.
$150.0M
Texas Attorney General Ken Paxton secured a $150 million multistate settlement against 23andMe following a 2023 data breach that exposed genetic and personal data of 6.9 million consumers. The settlement resolves bankruptcy claims and requires enhanced data security, risk assessments, and an independent advisory board, with immediate recovery of $18 million from bankruptcy funds.
$18.0M
New York Attorney General Letitia James and a bipartisan coalition of 42 other attorneys general secured an $18 million settlement from genetic testing company 23andMe for failing to protect customers' private genetic data. The October 2023 data breach exposed sensitive genetic information of 6.9 million consumers, including 305,245 in New York, with some data published for sale on the dark web. The settlement includes monetary penalties and new data protection requirements for the company and its successor, 23andMe Research Institute.
$18.0M
Attorney General William Tong led a coalition of 42 attorneys general in a settlement with the bankruptcy trustee for 23andMe, resolving allegations from a 2023 data breach that compromised the genetic data of 6.9 million customers. The settlement includes $150 million in allowed claims, with $18 million paid from bankruptcy funds, and requires enhanced data security measures for the new entity holding the data.
$18.0M
A coalition of 42 state attorneys general settled bankruptcy claims against 23andMe following a 2023 data breach that compromised genetic data of 6.9 million customers. The settlement includes $150 million in allowed claims, with $18 million paid from bankruptcy funds, and requires enhanced data security measures for the successor entity, 23andMe Research Institute.
Connecticut Attorney General William Tong submitted testimony in support of genetic privacy legislation that would grant residents exclusive control over their DNA and genetic data. The legislation is inspired by his office's investigation into 23andMe's data breach affecting over six million customers and the company's subsequent bankruptcy. The bill requires express consent for DNA use, imposes security measures, and prohibits marketing use of DNA.