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Congress Demands Answers on Data Privacy Ahead of 23andMe Sale

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Congress Demands Answers on Data Privacy Ahead of 23andMe Sale

by Investor News Today
June 14, 2025
in Technology
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Congress Demands Answers on Data Privacy Ahead of 23andMe Sale
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US Representatives Alexandria Ocasio-Cortez and Jan Schakowsky on Thursday despatched letters to the 2 potential consumers of troubled genetic testing agency 23andMe demanding particulars about client information privateness ought to both of them purchase the corporate.

Signed by 20 different Democratic members of Congress, the letters—which might be learn right here and right here—have been despatched to Regeneron Prescribed drugs and TTAM Analysis Institute, which have put forth separate bids to purchase 23andMe. Within the letters, they ask Regeneron and TTAM if they may proceed to present clients the choice to delete their information and withdraw consent for his or her information for use in medical analysis. In addition they need to know if 23andMe’s present coverage of not sharing genetic information with legislation enforcement and not using a warrant will probably be upheld, and whether or not each entities intend to proactively notify 23andMe clients in regards to the sale.

After struggling for years to show a revenue, 23andMe filed for chapter safety in March and put its property up on the market. Shortly after, its CEO, Anne Wojcicki, resigned. Wojcicki had tried unsuccessfully to take the corporate non-public, however her proposals have been rejected by a particular committee fashioned by 23andMe’s board of administrators.

In Could, biotech firm Regeneron introduced that it was named the profitable bidder in a chapter public sale, providing $256 million to amass 23andMe. “We consider we might help 23andMe ship and construct upon its mission to assist these all for studying about their very own DNA and tips on how to enhance their private well being, whereas furthering Regeneron’s efforts to make use of large-scale genetics analysis to enhance the best way society treats and prevents sickness total,” mentioned George Yancopoulos, cofounder and chief scientific officer of Regeneron, in an organization assertion final month.

However after the public sale closed, Wojcicki put in a bid of her personal—providing $305 million by means of a newly fashioned nonprofit, TTAM Analysis Institute. The supply prompted a federal decide to reopen the sale course of, and now each Regeneron and TTAM may have an opportunity to place in a closing bid.

Based in 2006, 23andMe pioneered the sphere of private genomics with its DNA check kits, which permit clients to study their ancestry, household connections, and sure medical dangers after submitting a spit pattern. Regardless of promoting greater than 12 million of its DNA testing kits, the corporate by no means achieved profitability and struggled to diversify its income streams after going public in 2021. In one other blow to the corporate, a significant information breach in 2023 uncovered the private information of tens of millions of consumers, together with a leak that focused customers with Chinese language and Ashkenazi Jewish heritage.

The brand new proprietor of 23andMe would purchase its huge trove of genetic information, elevating questions on how that information could be used. Underneath 23andMe’s present coverage, clients can select to make their genetic information and different private info obtainable for medical analysis. In addition they have the choice of deleting all of their information and directing 23andMe to destroy their saliva pattern. The members of Congress who despatched the letters on Thursday are looking for readability from Regeneron and Wojcicki on whether or not they plan to proceed these practices.

The signees are additionally involved about genetic information being shared with legislation enforcement and immigration authorities and the opportunity of genetic and different private information getting used to coach AI fashions. They’re additionally asking Regeneron and TTAM to reveal a full record of all third events who at the moment have entry to 23andMe information and the steps each entities will take to make sure transparency of third-party entry sooner or later. 23andMe beforehand had a multi-year analysis collaboration with pharma large GlaxoSmithKline.

The representatives are asking Regeneron and TTAM to reply by June 26.

Wojcicki and 23andMe’s interim CEO, Joe Selsavage, testified throughout a Home Oversight Committee listening to this week on the privateness and nationwide safety issues surrounding 23andMe’s sale. Throughout that listening to, Selsavage instructed lawmakers that 1.9 million folks, or about 15 p.c of its buyer base, have requested for his or her genetic information to be faraway from the corporate’s servers because the firm filed for chapter safety in March.

This week, greater than two dozen states and the District of Columbia filed a lawsuit towards 23andMe, arguing that the corporate can not public sale 15 million clients’ extremely delicate private genetic info with out their consent or information.



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