Anne Wojcicki has reclaimed control of 23AndMe through a successful bid by TAMM Research Institute, a nonprofit controlled by Wojcicki – but this move could bring a new set of unique challenges.
Gary Kibel, a partner in the Privacy, Technology + Data Security Practice Group at Davis+Gilbert, was quoted extensively in Yahoo! Finance speaking on data privacy concerns that could stem from TTAM Research Institute’s purchase of 23AndMe and what state laws could potentially block the sale of sensitive consumer data.
TTAM Research Institute classifying as a nonprofit is “a legitimate concern,” Gary states. Further explaining that “most state consumer privacy laws do not apply to nonprofit entities.”
“Nineteen states do have laws that require a company to obtain consent to process sensitive customer information. And some states have adopted stand-alone consumer health data privacy laws that create a higher standard of consent for the transfer of consumer health data to third parties,” Gary said.
In addition, outside of those state rules, Gary explained that every state has “UDAAP” laws that protect consumers against unfair or deceptive acts and practices, and the US Federal Trade Commission has made it clear that bankruptcy does not automatically entitle a company to transfer consumers’ personal information.
The conversation over what happens to consumer data and how to protect genetic data collected by 23andMe from sale has raised concern among lawmakers. Gary reacted to these concerns with the idea that “maybe this spurs Congress to realize, ‘You know what? We need a federal comprehensive consumer privacy law, because we don’t have one.’”
To read more about TTAM Research Institute’s purchase of 23AndMe and rising concerns surrounding its sensitive customer data, read the full article below.