California Attorney General Rob Bonta’s office has raised serious legal concerns about genetic testing company 23andMe’s proposed sale of genetic data to TTAM Research Institute. According to a statement released Monday, the sale violates California’s Genetic Information Privacy Act (GIPA), which mandates that companies must obtain explicit opt-in consent from consumers before transferring their genetic data to third parties.
The deal, which was approved by a federal bankruptcy judge, would transfer vast amounts of sensitive genetic data and biological samples to TTAM, a nonprofit founded by 23andMe’s former CEO Anne Wojcicki.
California Warns 23andMe Sale Violates Genetic Privacy Law, Plans Further Action
Under California’s GIPA law, companies must secure affirmative customer consent before sharing or selling genetic information. The Attorney General’s office contends that 23andMe has failed to meet this requirement in its bankruptcy asset sale.
Bonta’s spokesperson, Elissa Perez, expressed disappointment over the court’s decision to allow the sale, emphasizing that the transfer of data without proper consent undermines consumer privacy protections. Despite the legal setback, Bonta’s office is continuing to explore potential next steps, indicating that further state action could be taken to safeguard Californians’ genetic privacy.
California Slams 23andMe Data Sale as Illegal, Citing Violations of Genetic Privacy LawThe controversy centers on the potential misuse of sensitive genetic data collected by 23andMe. Perez reaffirmed the state’s commitment to protecting personal information and hinted at further legal challenges to any use of data that conflicts with California’s privacy laws.
Meanwhile, 23andMe has stated that the sale includes additional consumer safeguards, such as notifications when the transaction is finalized. Anne Wojcicki has also reiterated her support for transparency and individual control over genetic data, though critics argue these assurances fall short of GIPA’s requirements.
Federal Judge Overrules States’ Objections, Sale Proceeds Despite Ongoing Genetic Privacy Concerns
While California continues to object, more than 30 other states initially opposed the sale but later withdrew their objections. Only five states — California, Kentucky, Tennessee, Texas, and Utah — remained opposed. However, U.S. Bankruptcy Judge Brian C.
Walsh dismissed their objections, stating that TTAM’s acquisition would not violate privacy rules, as the data would remain under similar corporate leadership and privacy policies. Judge Walsh emphasized continuity in company operations as a reason to approve the sale, suggesting that no substantial privacy risks were present in his view.
23andMe’s bankruptcy sale to TTAM is expected to close in the coming weeks, marking a pivotal transition for the genetic data company. However, legal and political scrutiny is likely to persist. Bipartisan voices in Congress have emphasized the need for explicit consumer consent in any data transfer scenario, reinforcing national concerns about genetic privacy.
As California considers further actions, the final outcome could set important precedents for how sensitive health data is treated during corporate restructurings and sales.
