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23andMe Bankruptcy: What Happens to Your Genetic Data?

May 23, 2025 / 09:23

This episode discusses the bankruptcy case of 23andMe, personal data ownership, and genetic data privacy with guest Gideon Nave, Associate Professor of Marketing at Wharton.

Gideon Nave explains the implications of genetic data being sold to other companies without clear consent. He emphasizes that genetic data is unique because it is unchangeable and contains sensitive information about individuals.

Nave highlights the importance of informed consent and the need for regulations to protect personal data, especially genetic data, which is increasingly relevant in today's digital world.

The conversation touches on the transparency required from companies acquiring 23andMe and the societal benefits of genetic data collection for medical research.

Nave shares his personal experience with 23andMe, expressing concerns about data control and the potential misuse of genetic information.

TLDR

Gideon Nave discusses 23andMe's bankruptcy, genetic data privacy, and the need for better regulations on personal data ownership.

Episode

9:23
00:00:00
Dan Loney: Well, the bankruptcy case of genetic testing site 23andMe is bringing forward an interesting case around personal data to
00:00:08
dive deeper into. What should people do who have provided personal data to one company but see it gets sold to another?
00:00:16
Gideon Nave is Associate Professor of Marketing here at the Wharton School, and he joins us right now. Gideon, great to
00:00:21
talk to you again. How are you, sir? Gideon Nave: I'm well. Always great to talk to you too. - I would guess
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that when you have instances like this, that for the most part, people don't necessarily even think about the data. It's
00:00:34
just kind of part of doing business here. - Yeah, I mean, we do know that our data is everywhere and
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moving around between entities, sometimes without very clear understanding of us and transparency of this process.
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But I think genetic data is something a bit more special than just what we buy and what we like on Facebook.
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- What makes this so important in your mind? - There are several layers here, but I'd say the number one layer
00:01:06
is that our genetic data is something that we cannot change about ourselves. We are born with it. You can measure it for
00:01:12
us even before we are born, and it continues to follow us throughout our lives. So you know, I may be able to change my
00:01:21
behavior, but I will not be able to change my genetics. And my genetics includes information for many other things that,
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because they are determined by genetics. Even to some degree, I mean, many things are just partly determined by genetics,
00:01:35
like personality and so on. But even these things, the genetic component of it, I will not be able to change about myself, and
00:01:44
this data includes information about it. Not to mention that lots of these things are things that I even don't know about
00:01:51
myself, that maybe are in the data and I'm not aware of it. Maybe I will even choose to not know deliberately. I will not
00:01:58
want to know about it. That's just the first layer. I mean, I can continue with many other layers.
00:02:03
- So the concern would probably be, if a company were to acquire the data that maybe is not necessarily in that field, but
00:02:12
is looking to maximize potential profitability of that data. - Yeah, I mean, let's say it this way. You
00:02:20
know, they say it in the Silicon Valley, that if you're not paying for the product, you are the product. We kind of agreed to
00:02:26
the fact that we are customers. And as a result of being customers, we are providing something, which is our data, to
00:02:35
the companies, which makes them live and survive. But again, this is a bit different for the case of genetic data. We
00:02:42
actually paid companies like 23andMe to give us a service, to genotype us. And the sad thing about this company is that, once
00:02:53
they gave us the service, we don't have a strong reason to continue being a customer, right? So it's not like their
00:03:01
genetic data now keeps giving us a lot of value once we got the genetic report. Again, unless there are some progresses in
00:03:09
genetic research, and then they can give us some additional insight, which they did and actually didn't work so well.
00:03:17
Part of the reason that it doesn't work well is that genetics, you know, in most cases, it's informative of
00:03:22
things, but it's not deterministic. It gives you some probabilistic knowledge that, with the current level of
00:03:28
genetic data, is relatively small. We actually never gave 23andMe our data. Just, "Hey, go do research with our data, or go
00:03:39
advertise with our data." But they have this data and they can use it. The question is whether we are now in a kind of a
00:03:47
unilateral situation where we don't get benefit from our data given to them, and they can still benefit from our data. And
00:03:56
this is a bit, I guess, an issue related to autonomy and to informed consent of like, you know, do I want this to be
00:04:05
done? If the answer is yes, then, you know, many people did give informed consent to 23andMe to use the data for research,
00:04:12
and I think that this is great. If you're not okay with this, then you can ask 23andMe to delete your data. You're
00:04:21
legally allowed to do this. Maybe we want to thank the European Union for giving us this right to be forgotten. And
00:04:29
you can ask every company, whether it's Facebook or 23andMe, to forget about you. And if you're not fine with it, go do
00:04:38
it. - But how do we avoid the misuse of this personal data, this genetic data? And
00:04:45
I guess, from a regulatory landscape, you mentioned about what Europe has done around this topic. Obviously, we don't have
00:04:53
the same kind of structure here in the United States, but it becomes a more important topic as we move forward since our
00:05:00
lives are so much more digital than they were a couple of decades ago. - It's
00:05:04
an extremely important topic, and it goes beyond genetics. But I think genetics has several components that make it
00:05:11
especially alarming, like genetic data is considered very sensitive also within medicine. How do we deal with it? Well,
00:05:17
you know, I think first of all, many of the GDPR regulations are very much adopted by American companies because they also
00:05:26
serve European customers. I think that one potential limitation of the regulations is the thing that, you know, with
00:05:37
consent, you're allowed -- the companies can do everything they want. And we are consenting to numerous things every day. Like,
00:05:44
every time we are going to a new website, we are consenting to stuff. We have become so automatically consenting to
00:05:51
everything that it's very clear that nothing is going to stop us probably from consenting to many other things we don't want. And
00:06:00
then, you know, we have to go back, and there is a lot of effort of thinking of, what did I consent to, and where will I --
00:06:07
it's an issue. It's a problem. I mean, there may be a business opportunity here for companies that will kind of try to look at
00:06:14
what did you consent to, and try to figure out where your data is. - One of the things that I saw noted in looking at what we
00:06:23
might see play out with the 23andMe bankruptcy process is also, whoever that company is who comes in and maybe acquires it,
00:06:30
is having a level of transparency so that the customers of 23andMe truly understand where this data is
00:06:37
going to be potentially living and going down the road. - Absolutely. And I think that as a society, we have a
00:06:44
very strong interest that this data will be collected. 23andMe is a company that is very important for the
00:06:52
future of medicine. It's a company that collected data, that facilitated breakthrough discoveries of research. Even,
00:07:01
you know, you can say genetics maybe has not delivered as much as we hoped for when the Human Genome Project
00:07:12
concluded, and we thought that we were going to solve all of our problems. But we do gain a lot, and it's actually crucial that
00:07:18
we have very large samples when it comes to genetic data. So we actually all, as a society, are kind of in a place where
00:07:26
it's good for us that everyone give their genetic data, but you know, we do have to pay a price for it. We do know also that
00:07:34
there are data breaches. There are a lot of potential downsides here, and this is like a classical place where you need
00:07:41
regulation. I think that in a place like this, where the benefit is of society, but the data is so, so, so sensitive, I
00:07:52
think regulation must take place. And at the moment, we don't have much of it. We have regulation about using genetic
00:07:57
data for insurance, for job applications, and so on. We don't have it for many other things. And so once this is the
00:08:09
case, it's a bit of a broken area where we have to depend on maybe the GDPR, which is related to many types of data.
00:08:16
We rely on the consent, we rely on the companies not actually just unilaterally modifying the agreements that
00:08:24
they have with us and doing stuff with the data. Yeah, there is a lot of -- there are a lot of problems here. I personally can
00:08:32
tell you that I did -- I was a customer of 23andMe and I told them that, "I want my data. I will have my
00:08:38
data. But I don't want them to keep my data, because at the moment, I don't feel like I have control of where it's going to
00:08:44
go." And it's a bit sad, because I'm using data of many, many people in my own research where we are -- where I'm using it
00:08:51
to identify genetic variations that are related to all sorts of human conditions, which I find very important. - Gideon, great to
00:09:02
talk to you again. Thanks very much for your time today. - Thank you. - Thank you. Gideon Nave, Associate Professor of Marketing
00:09:08
here at the Wharton School.

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Episode Highlights

  • The Importance of Genetic Data
    Gideon Nave explains why genetic data is unique and sensitive, emphasizing its lifelong impact.
    “Our genetic data is something that we cannot change about ourselves.”
    @ 01m 06s
    May 23, 2025
  • Consent and Data Ownership
    The conversation highlights the complexities of consent regarding personal data and its implications.
    “We are consenting to numerous things every day.”
    @ 05m 44s
    May 23, 2025
  • Regulation of Genetic Data
    Gideon Nave stresses the need for regulation in handling sensitive genetic data.
    “Regulation must take place for sensitive data.”
    @ 07m 52s
    May 23, 2025

Episode Quotes

  • If you're not paying for the product, you are the product.
    23andMe Bankruptcy: What Happens to Your Genetic Data?
  • I want my data. I will have my data.
    23andMe Bankruptcy: What Happens to Your Genetic Data?

Key Moments

  • Data Ownership00:12
  • Genetic Sensitivity00:54
  • Consent Issues05:44
  • Need for Regulation07:52

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