New York has joined a coalition of 28 states in a major legal challenge to stop DNA testing company 23andMe from selling customers’ genetic data. The move follows 23andMe’s bankruptcy filing in March 2025 and its announcement that it plans to auction off assets—including the personal genetic profiles of more than 15 million people.
State officials say this action could put highly sensitive medical and genetic information at risk. They argue that such data cannot be sold without the informed, written consent of each individual. The lawsuit aims to protect privacy rights and prevent the misuse of personal health information.
Coalition pushes back on data auction
The multistate lawsuit, filed on June 10, argues that 23andMe’s proposed data sale would violate state laws and consumer trust. The coalition warns that selling DNA profiles, health data, and even stored biological samples could open the door to data breaches, unauthorized use, and discrimination.
New York, along with states like California, Florida, and Illinois, is urging the bankruptcy court to block any sale that involves private genetic information. They stress that customers never agreed to have their data auctioned off to unknown buyers.
Genetic data too sensitive for sale
The type of data at risk includes:
- DNA test results
- Health-related traits and genetic risk factors
- Linked medical records
- Physical biological samples still held by the company
Because this information is unique, unchangeable, and deeply personal, officials say it must be treated with the highest level of protection—especially in bankruptcy proceedings.
Public warnings issued earlier this year
In March 2025, following 23andMe’s bankruptcy announcement, New York Attorney General Letitia James issued a public alert. She advised residents who had used the service to:
- Contact 23andMe and request the deletion of their genetic data
- Instruct the company to destroy any remaining DNA samples
Although 23andMe promised strict data controls in its original privacy policies, critics say the bankruptcy plan contradicts those commitments.
Growing national concern over data privacy
This lawsuit marks one of the most significant multistate legal actions involving digital and biological data privacy. As more companies collect and store health-related information, state officials are calling for tighter regulation and enforcement to ensure consumers retain control over their data—even after a company fails.
The outcome of this case could set a national precedent for how sensitive genetic information is handled in corporate bankruptcies.
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