Search Articles
ST. LOUIS (CN) – A bipartisan multi-state coalition of attorneys general filed a lawsuit Tuesday objecting to 23andMe’s plan to auction the personal genetic information of 15 million Americans without consent.
The potential auction is part of 23andMe’s bankruptcy litigation, filed in the Eastern District of Missouri in March of 2025. The 28-state coalition claims 23andMe, a direct-to-consumer DNA testing company, is seeking to sell off its assets, including sensitive genetic and health data.
“23andMe cannot auction millions of people’s personal genetic information without their consent,” New York attorney general Letitia James said in a statement. “New Yorkers and many others around the country trusted 23andMe with their private information and they have a right to know what will be done with their information.”
A 23andMe spokesperson said in a statement that the company believes the suit is without merit.
“The sale is permitted under 23andMe privacy policies and applicable law,” the company said. “We required any bidder to adopt our policies and comply with applicable law as a condition to participating in our sales process.”
In its lawsuit, the coalition stated that it is not opposed to any sale related to the bankruptcy, but contends that informed consent from each customer must be obtained before any data is transferred.
The states claim that humans have inherent common law rights of ownership or control of the biological material, their genotype data and their personal information.
“Beyond these general principles, some states have specific statutes that codify these common law rights,” the lawsuit states. “For example, specific criminal statutes and genetic data privacy statutes require express, informed, affirmative consent from consumers prior to the sale or transfer of genetic data.”
Beyond ownership rights, the states argue that consumers reasonably expected privacy and control over their data based on 23andMe’s own assurances, such as promises not to share genetic information with employers, insurers, or public databases without consent.
“The Debtors contend that each customer’s ‘click-through’ acceptance of 23andMe’s Terms of Service and Privacy Statement upon their initial sign-up provides 23andMe with sufficient rights to sell the customer’s biological material and Genetic and Phenotype Data in the proposed sale,” the states claim in the lawsuit. “This contention is based on a statement tucked away in the middle of their privacy policy that allows for the sale of customers’ data in the context of a bankruptcy case (notwithstanding contrary representations elsewhere). However, this bankruptcy provision was added on June 8, 2022, and it would not be applicable to customers who signed up before then.”
However, 23andMe’s spokesperson stated in its announcement that customers’ sensitive information will be protected in any transfer.
“Customers will continue to have the same rights and protections in the hands of the winning bidder,” the company said. “Both remaining bidders are US companies, have committed to abide by 23andMe’s privacy policies, and will continue to operate 23andMe as it has always been operated.”
The states, though, reject that argument.
“You can paint a horse and call it a zebra, but it is still a horse,” the coalition claims in its lawsuit. “Likewise, the Debtors can label the sale and transfer of their customer data a ‘change of ownership,’ yet it is still a transfer. Accordingly, the Debtors and Purchasers must comply with the respective states’ laws prohibiting the sale, transfer, or disclosure of genetic data.”
Concerns about the security of customers’ sensitive data have been voiced since 23andMe entered into bankruptcy. Several attorneys general, including James, issued consumer alerts urging consumers to contact the company to request the deletion of their personal data.
Attorneys general from Arizona, Colorado, Connecticut, the District of Columbia, Florida, Illinois, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Missouri, New Hampshire, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin joined New York in the lawsuit.
Follow @joeharris_stlSubscribe to our free newsletters
Our weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.