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FIRST ON FOX: Republican Senators John Cornyn and Chuck Grassley, alongside Democratic Senator Amy Klobuchar, are introducing a pivotal bipartisan measure aimed at enhancing the protection of sensitive genetic information. This initiative comes in direct response to the privacy issues raised by the recent bankruptcy of 23andMe, as reported by Fox News Digital.
Cornyn, representing Texas, Grassley from Iowa, and Klobuchar from Minnesota have teamed up to present the Don’t Sell My DNA Act. This legislation seeks to fortify the safeguards surrounding customer genetic data when companies that maintain such information face bankruptcy proceedings. The proposed bill expands the definition of “personally identifiable information” under the bankruptcy code to include genetic data.
Currently, the bankruptcy code provides limited protections for personally identifiable information. These measures aim to mitigate risks associated with identity theft and unlawful injuries during bankruptcy court proceedings.
According to Senate aides, the existing definition of personally identifiable information encompasses details such as a person’s name, address, email, phone number, Social Security number, and credit card numbers. However, aides note that this definition has become outdated as it fails to reference genetic information, exposing it to potential risks.
One Senate aide remarked, “This legislation would remedy this gap by updating the bankruptcy code to include genetic information as part of the definition of ‘personally identifiable information.’” This update is crucial in modernizing the legal framework governing sensitive personal data.
Furthermore, the bill aims to enhance consumer privacy by requiring customers to provide explicit consent before their genetic information can be sold or leased during bankruptcy proceedings. Companies would also need to offer prior written notice regarding the use of genetic data in such situations.
As an added layer of protection, the legislation stipulates that trustees or debtors in possession must delete any genetic information that is not subject to sale or lease following bankruptcy proceedings.
Senator Cornyn emphasized the importance of these measures, stating, “Advances in DNA testing have provided Americans with unprecedented insights into their genetic makeup, but it is critical that companies implement strict safeguards for this data in the event of bankruptcy.” He further elaborated that updating the bankruptcy code would protect sensitive genetic information from being exploited or disclosed without consent.
Senator Klobuchar echoed Cornyn’s sentiments, expressing concern over the lack of transparency in how companies manage consumer data. She highlighted the pressing need for the bill, especially given reports that 23andMe intends to sell customer genetic data assets to a large pharmaceutical firm.
Klobuchar stated, “This bill will implement important protections to ensure Americans’ privacy while enhancing consumer control over how their sensitive health data is utilized.” Such legislative efforts are essential in an era where personal data increasingly influences health outcomes and privacy rights.
Grassley reiterated the necessity of consumer confidence, asserting that individuals should feel secure knowing their personal information shared with public companies is not vulnerable during bankruptcy. He stated, “This bill would address critical gaps in current legislation, ensuring the safeguarding of consumers’ genetic information and preventing it from being treated as an ordinary financial asset.”
The urgency of these concerns intensified when 23andMe recently revealed plans to auction its assets, with Regeneron Pharmaceuticals poised to acquire the genetic testing company. 23andMe announced that Regeneron will purchase the company through a court-supervised bankruptcy auction.
Despite assurances from Regeneron regarding the protection of consumer data, Senate aides pointed out that the broader issue of data privacy during bankruptcies still requires attention.
23andMe, once a trailblazer in the realm of consumer DNA testing, filed for Chapter 11 bankruptcy earlier this year due to financial challenges, leadership changes, and rising anxieties surrounding the security of customer data.
Regeneron confirmed that it would acquire nearly all of 23andMe’s assets, having won the bankruptcy auction with a bid of $256 million. This auction is part of the Chapter 11 bankruptcy process initiated in March, which aimed to facilitate the company’s sale.
The genetic testing company’s bankruptcy petition valued its assets between $100 million and $500 million, mirroring its estimated liabilities. Regeneron plans to purchase several segments of 23andMe, including its personal genome service and health and research services.
Legislative Response Unfolds
As the legislative response gains momentum, the proposed bill reflects a growing recognition of the need for robust privacy protections in the face of technological advancements. Genetic testing services have become increasingly popular, but this expansion raises questions about how such sensitive information is handled, especially under challenging circumstances like bankruptcy.
Moving forward, lawmakers hope to create a framework that not only adapts to the evolving landscape of genetic testing but also ensures consumer rights are firmly protected. The enactment of the Don’t Sell My DNA Act could mark a significant step toward addressing the vulnerabilities posed by the intersection of genetics and corporate governance.
Ultimately, these discussions underscore a pivotal moment in the dialogue surrounding data privacy, emphasizing the imperative for companies to institute comprehensive protections for their customers’ sensitive information.
