Federal Trade Commission Chairman Andrew N. Ferguson sent a letter to the U.S. Trustee addressing concerns surrounding the 23andMe bankruptcy proceedings, particularly the potential sale or transfer of sensitive consumer data. In the letter, Chairman Ferguson acknowledged widespread public concern about how personal data may be handled during the company’s financial restructuring. He emphasized the importance of companies honoring their commitments to consumers, especially regarding the use and protection of sensitive personal information such as genetic data.
Chairman Ferguson stated, “Many Americans are concerned about the impact of a potential sale of their data, and I understand those concerns.” His remarks highlight the need for consumer trust in business practices, especially in situations involving bankruptcy and asset transfers. The FTC continues to focus on promoting competition and safeguarding consumer interests through enforcement and education. As 23andMe navigates its bankruptcy process, the FTC’s letter signals a reminder to involved parties that consumer privacy must remain a central consideration in any potential transaction involving user data.
