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The California attorney general announced Monday that his office had reached a $6 million settlement with 23andMe, resolving allegations that the genetic-testing company failed to protect customers’ personal information and genetic data after a 2023 security breach.
Earlier this year, Attorney General Rob Bonta filed a lawsuit alleging that 23andMe, which changed its official name to Chrome Holding Co. last year, did not adequately protect sensitive information and genetic data that was then offered for sale on the “dark web” by unauthorized agents. The lawsuit also claimed 23andMe misled customers about the severity of the data breach, which impacted nearly 7 million users across the U.S.
“I am proud to fight for the privacy rights of Californians and to deliver this settlement for consumers who put their trust in 23andMe,” Bonta said in an Oct. 19 press release. “Companies cannot evade California’s consumer protection and privacy laws by filing for bankruptcy.”
Founded in 2006, 23andMe, which was once headquartered in Mountain View, rose to prominence as the first company to sell DNA sequencing kits directly to consumers. The company later faced financial hardships and filed for bankruptcy last year.
The 23andMe Research Institute, which acquired 23andMe’s assets in a bankruptcy auction, told the Voice in May that it was a “newly established independent nonprofit organization” and was not involved in the lawsuit.
Consumers have the right to ask 23andMe Research Institute to delete their data, including destroying test samples, according to Bonta’s press release. Consumers can also revoke their permission for their genetic data to be used for research.
“I want to remind Californians that customers of 23andMe can delete their private genetic data – no matter who owns it,” Bonta said.
