Texas Attorney General Ken Paxton filed a lawsuit in the 23andMe bankruptcy case to prevent the sale of Texans' genetic data without proper consent. The action seeks to confirm Texans' property rights over their genetic information under the Texas Data Privacy and Security Act and the Texas Direct-to-Consumer Genetic Testing Act. The AG argues that 23andMe's proposed asset sale would violate Texas law requiring separate express consent for disclosure of genetic information.
The judgment sought would confirm Texans' property rights over their genetic data and order 23andMe to comply with Texas privacy laws, including obtaining separate express consent before disclosing genetic information and honoring consumer requests for data deletion.
In-house legal teams should review all vendor agreements involving the collection, processing, or sale of genetic, health, or consumer personal data, particularly with genetic testing or biotechnology vendors. Clauses related to data sale, transfer, or disclosure must require separate express consent from consumers prior to any transfer, especially in bankruptcy or asset sale scenarios. Contracts should also explicitly outline consumer rights to data deletion and sample destruction, and require vendors to comply with applicable state genetic data privacy laws, including the Texas Direct-to-Consumer Genetic Testing Act and Texas Data Privacy and Security Act. Additionally, teams should ensure contracts include provisions requiring vendors to notify consumers and obtain consent before any change in data ownership, such as through a merger, acquisition, or bankruptcy sale.
Entity
23andMe
Industry
Healthcare"23andMe, a company offering direct-to-consumer genetic testing, recently filed for Chapter 11 bankruptcy in the Eastern District of Missouri."
"under the Texas Direct-to-Consumer Genetic Testing Act and the Texas Data Privacy and Security Act"
"23andMe sought to sell Texans’ private genetic information, health information, and other personally identifiable information to a future purchaser of the company's assets."
"Texas law protects against the unauthorized sale of genetic information, and companies must obtain Texans’ separate express consent to sell, transfer, or otherwise disclose their genetic information to any potential buyers."
"Attorney General Ken Paxton has filed suit in the ongoing 23andMe bankruptcy case"
"Texas’s strong data privacy laws grant consumers property rights to their genetic information"
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.
Connecticut joined a coalition of 28 attorneys general to object to 23andMe's proposed sale of genetic data in bankruptcy without customer consent. The states argue such sensitive information requires express consent and cannot be sold like ordinary property. Attorney General Tong also advised consumers to delete their data and genetic samples.
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.
Texas Attorney General Ken Paxton launched an investigation into Meta's Meta AI Glasses over allegations of unlawful facial biometric data collection, deceptive privacy practices, and unauthorized sharing of user data with subcontractors. The investigation follows concerns that the glasses' always-on recording mode lacks proper user notice, planned facial recognition features would collect data without consent, and private user videos are accessed by third-party annotators in Kenya. The AG issued a Civil Investigative Demand to Meta to determine violations of Texas privacy laws.
Texas Attorney General Ken Paxton launched an investigation into Meta regarding its Meta AI Glasses, alleging unlawful collection of facial biometric data, deceptive privacy representations, and unauthorized sharing of user data with subcontractors. The investigation follows concerns that the glasses’ always-on recording mode lacks proper notice, subcontractors access private user content including intimate moments, and Meta plans to deploy facial recognition technology to collect unsuspecting individuals’ facial geometry. The AG issued a Civil Investigative Demand to determine if Meta violated Texas law by deceptively misrepresenting its data use practices.
Texas Attorney General Ken Paxton filed a lawsuit against proxy advisory firm Institutional Shareholder Services, Inc. (ISS) alleging violations of the Texas Deceptive Trade Practices Act by prioritizing political agendas over sound financial guidance in voting recommendations. The lawsuit seeks an injunction to stop deceptive practices and civil penalties of up to $10,000 per DTPA violation. This action follows a 2025 investigation into ISS and peer firm Glass Lewis & Co.