
Steps to Take in Response to 23andMe Bankruptcy Filing
Hello all, and happy Thursday!
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Published: March 27, 2025
Hello all, and happy Thursday!
In the privacy world, it’s easy to get caught up in all of the technologies and procedures and assessments and policies—meanwhile, we forget that a person (the data subject) is at the root of all that work. It’s not personal data unless there’s a person involved, after all.
A great example: 23andMe is filing for bankruptcy, and all of that very personal genetic data it collected over the years is up for sale. Data doesn't get any more personal than that.
The company’s privacy policy affirms that it will never share users’ information with insurance companies or law enforcement without a warrant. But will the buyer of that information hold the same standards? Even if they do, data misuse isn’t limited to just jacking up someone’s insurance premiums or investigating someone without probable cause.
We also don't have to limit speculation to what a legal purchaser of this data might do; we know that 23andMe was hit with a data breach in 2023, exposing the data of 6.9 million people.
The story underscores the importance of robust security, data minimization, and retention practices, as well as the importance of subject rights to ensure data subjects can control the destiny of their data—but it also shows just how much of a personal impact data privacy can have.
Customers of 23andMe should exercise as much control over their data as their governing law allows. California Attorney General Rob Bonta offers some good advice on what to do if you used 23andMe’s services.
Best,
Arlo
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The genetic testing company 23andMe, best known for allowing people to trace their ancestry with an at-home kit, has been struggling financially for months. So when the California biotech firm announced in a statement this week that it had entered the federal bankruptcy process with the goal of finding a buyer, one question was raised for the more than 15 million users of the service: What's going to happen to my data? The company insists customers' information is protected. But if you would like to opt out entirely, California Attorney General Rob Bonta has released this eight-step guide to deleting your genetic data from 23andMe.
California’s Privacy Protection Agency has named Tom Kemp as its next executive director, putting the tech entrepreneur at the helm of the nation’s only dedicated privacy rights enforcement agency. Kemp, formerly CEO of cybersecurity company Centrify and a longtime policy adviser to lawmakers pushing state-level privacy laws, will be the CPPA’s second-ever leader after Ashkan Soltani departed as director in January. Kemp assumes control of the agency on April 1.
Virginia Gov. Glenn Youngkin vetoed H.B. 2094, a bill that sought to regulate high-risk AI use in significant decision contexts like housing, employment, and health care. While regulating the use of automated decision systems in these life-altering decisions is an urgent need, this Virginia bill had serious shortcomings that caused opposition from both industry and consumer groups.
A federal judge in Florida denied the dismissal of a website privacy claim brought under the Florida Security of Communications Act (FSCA). In doing so, the judge may have thrown the FSCA back into the mix of decades-old statutes that pose new dangers to consumer-facing websites, such as the California Invasion of Privacy Act (CIPA).
OpenAI is facing another privacy complaint in Europe over its viral AI chatbot’s tendency to hallucinate false information. Privacy rights advocacy group Noyb is supporting an individual in Norway who was horrified to find ChatGPT returning made-up information that claimed he’d been convicted for murdering two of his children and attempting to kill the third. Earlier privacy complaints about ChatGPT generating incorrect personal data have involved issues such as an incorrect birth date or biographical details that are wrong. One concern is that OpenAI does not offer a way for individuals to correct incorrect information the AI generates about them. Typically, OpenAI has offered to block responses for such prompts. But under the European Union’s General Data Protection Regulation (GDPR), Europeans have a suite of data access rights that include a right to rectification of personal data.
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Arlo Gilbert is the CEO & co-founder of Osano. An Austin, Texas native, he has been building software companies for more than 25 years in categories including telecom, payments, procurement, and compliance. In 2005 Arlo invented voice commerce, he has testified before congress on technology issues, and is a frequent speaker on data privacy rights.
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