In an era where privacy, confidentiality, and personal information hold paramount sanctity, the genetic testing company 23andMe and US states are battling for the data security of millions of US citizens. In March, the company filed for Chapter 11 bankruptcy protection to facilitate its sale. About this initiative, Mark Jensen, chair and member of the Special Committee of the board of directors, said 

“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business” 

Against this bankruptcy case, a number of US states wanted assurance that the personal data of US citizens would not be sold. The company had collected genetic data from 15 million customers who ordered DNA testing kits online and gave saliva samples to the company. 

Appointment of Consumer Protection Ombudsman 

In this legal battle, 23andMe agreed to allow a court-appointed overseer to take charge of reviewing customer’s genetic data during bankruptcy and ensure that the data remains protected. For that, US Bankruptcy Judge Brian Walsh ordered the appointment of a consumer protection ombudsman who will review customer’s genetic information and its security policies. The ombudsman will also be responsible for overseeing how the sale of the company during bankruptcy would impact customer’s data. 

An initial budget of $300,000 is allocated to the customer protection ombudsman to carry out the necessary work with the provision of more money on demand. 

Previously, the genetic testing company assured more than 25 US states that a customer data representative would ensure that the data of customers is secured during bankruptcy. However, the states were not satisfied with the measure.