Lawyers at Alston & Bird write:
On March 23, 2025, 23andMe Holding Co. (“23andMe”) filed for bankruptcy in the Eastern District of Missouri, potentially setting in motion the sale of genetic data collected from more than 15 million people. This has led to news outlets and state Attorneys General encouraging consumers to delete their 23andMe data before it is sold as part of the bankruptcy process.
The key question for many observers seems to be: Can 23andMe really sell genetic data through bankruptcy? The answer is: probably yes. If you’d like to know why, continue reading.
Here’s a snippet from the main part of their post:
The 23andMe Privacy Policy states that 23andMe may sell or transfer consumer personal information in the event of a bankruptcy. During registration, the consumer assents to the Privacy Policy and 23andMe Terms of Service by checking a box indicating the consumer’s agreement to the terms which are both hyperlinked in the text. Though courts can be inconsistent when it comes to enforcing online contracts between consumers and large companies, bankruptcy courts often look more closely at the content of the privacy policy, not at the method it was presented to the consumer, to determine if it permits the sale.
Read more at JDSupra.