23andMe Bankruptcy Sparks Data Privacy Concerns. Should It?

Hashed & Salted | A Privacy and Data Security Update

In the legal industry, handling business transactions is part of our daily routine. Managing the transfer of personal data during acquisitions, sales, mergers or bankruptcy proceedings has become second nature to us. We perform thorough due diligence for these deals, ensure that privacy policies allow for the transfer of personal data, and negotiate the necessary contracts with current partners and data recipients—crucial steps that can enhance the business's valuation.

Against this backdrop, the current discourse surrounding the 23andMe bankruptcy filing raises questions. Regulators and consumer privacy advocates are urging individuals to delete the data 23andMe holds on them, and are advocating for stronger privacy legislation. The court-appointed Consumer Privacy Ombudsman (CPO) in the case issued a report June 11 raising concerns about the sale of information in connection with bankruptcy. (For more on