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Why should they?
Anyone who used 23 and Me agreed that their genetic code was able to be used my 23 and Me for whatever they want. Why is it now the job of the government to jump in and give those people retroactive protection.
Because those people never agreed to it being used by anyone else. And it’s in the public interest to protect everyone from their highly-sensitive biometric data being misused.
Unfortunately, everyone who used their service did agree to it. Directly from their Privacy Policy:
https://www.23andme.com/legal/privacy/#data-sharing
Whether this will hold up in court is a bit murky. But without a large, laborious court battle, they can and will sell the data and they are "legally" allowed to
Also interesting is the language they used in the email they sent me after I requested account/data deletion:
The first bullet point makes sense - you agreed and they already published something, so too bad. The second bullet is doing the right thing. But those third and fourth bullets sound like they don’t really have to delete anything, and they’ll keep a bunch of data even if you ask them to trash it. I asked them to trash it anyway.