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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 the implications of genetic data privacy. Gideon Nave, Associate Professor of Marketing at Wharton, shares his insights.

Nave explains that genetic data is unique because it is unchangeable and contains sensitive information about individuals. He emphasizes the importance of transparency regarding how companies like 23andMe handle this data.

The conversation addresses the regulatory landscape in the U.S. compared to Europe, particularly the GDPR, and the challenges of informed consent in data sharing.

Nave also highlights the societal benefits of genetic data collection while acknowledging the risks and the need for better regulation to protect individuals.

The episode concludes with Nave sharing his personal experience as a 23andMe customer and his concerns about data control.

TL;DR

Gideon Nave discusses 23andMe's bankruptcy and the complexities of genetic data privacy and ownership.

Episode

9:23
00:00:00
Dan Loney: Well, the bankruptcy case of genetic testing site 23andMe is
00:00:04
bringing forward an interesting case around personal data to
00:00:08
dive deeper into. What should people do who have provided
00:00:12
personal data to one company but see it gets sold to another?
00:00:16
Gideon Nave is Associate Professor of Marketing here at
00:00:18
the Wharton School, and he joins us right now. Gideon, great to
00:00:21
talk to you again. How are you, sir?
00:00:23
Gideon Nave: I'm well. Always great to talk to you too. - I would guess
00:00:26
that when you have instances like this, that for the most
00:00:30
part, people don't necessarily even think about the data. It's
00:00:34
just kind of part of doing business here.
00:00:37
- Yeah, I mean, we do know that our data is everywhere and
00:00:41
moving around between entities, sometimes without very clear
00:00:46
understanding of us and transparency of this process.
00:00:50
But I think genetic data is something a bit more special
00:00:54
than just what we buy and what we like on Facebook.
00:00:59
- What makes this so important in your mind?
00:01:03
- 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
00:01:09
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
00:01:18
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
00:01:25
genetics includes information for many other things that,
00:01:28
because they are determined by genetics. Even to some degree, I
00:01:32
mean, many things are just partly determined by genetics,
00:01:35
like personality and so on. But even these things, the genetic
00:01:40
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
00:01:48
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.
00:01:55
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
00:02:01
can continue with many other layers.
00:02:03
- So the concern would probably be, if a company were to acquire
00:02:08
the data that maybe is not necessarily in that field, but
00:02:12
is looking to maximize potential profitability
00:02:16
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
00:02:23
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
00:02:31
customers, we are providing something, which is our data, to
00:02:35
the companies, which makes them live and survive. But again,
00:02:39
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
00:02:48
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
00:02:57
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
00:03:06
genetic report. Again, unless there are some progresses in
00:03:09
genetic research, and then they can give us some additional
00:03:12
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
00:03:19
genetics, you know, in most cases, it's informative of
00:03:22
things, but it's not deterministic. It gives you some
00:03:25
probabilistic knowledge that, with the current level of
00:03:28
genetic data, is relatively small. We actually never gave
00:03:34
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
00:03:43
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
00:03:51
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
00:04:01
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
00:04:09
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,
00:04:17
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
00:04:23
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,
00:04:33
to forget about you. And if you're not fine with it, go do
00:04:38
it. - But how do we avoid
00:04:41
the misuse of this personal data, this genetic data? And
00:04:45
I guess, from a regulatory landscape, you mentioned about
00:04:48
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
00:04:56
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
00:05:03
decades ago. - It's
00:05:04
an extremely important topic, and it goes beyond genetics. But
00:05:08
I think genetics has several components that make it
00:05:11
especially alarming, like genetic data is considered very
00:05:13
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
00:05:22
very much adopted by American companies because they also
00:05:26
serve European customers. I think that one potential
00:05:31
limitation of the regulations is the thing that, you know, with
00:05:37
consent, you're allowed -- the companies can do everything they
00:05:40
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
00:05:48
stuff. We have become so automatically consenting to
00:05:51
everything that it's very clear that nothing is going to stop us
00:05:56
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
00:06:02
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
00:06:10
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
00:06:17
is.
00:06:19
- 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,
00:06:27
whoever that company is who comes in and maybe acquires it,
00:06:30
is having a level of transparency so that the
00:06:33
customers of 23andMe truly understand where this data is
00:06:37
going to be potentially living and going down the
00:06:40
road. - Absolutely. And I think that as a society, we have a
00:06:44
very strong interest that this data will be collected.
00:06:47
23andMe is a company that is very important for the
00:06:52
future of medicine. It's a company that collected data, that
00:06:56
facilitated breakthrough discoveries of research. Even,
00:07:01
you know, you can say genetics maybe has not delivered
00:07:06
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
00:07:14
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
00:07:22
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
00:07:31
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
00:07:38
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
00:07:45
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
00:07:55
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
00:08:04
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
00:08:12
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
00:08:20
actually just unilaterally modifying the agreements that
00:08:24
they have with us and doing stuff with the data. Yeah, there
00:08:27
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
00:08:35
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
00:08:42
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
00:08:47
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
00:08:57
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
00:09:05
you. - Thank you. Gideon Nave, Associate Professor of Marketing
00:09:08
here at the Wharton School.

Episode Highlights

  • The Importance of Genetic Data
    Gideon Nave explains why genetic data is unique and sensitive, emphasizing its permanence.
    “Genetic data is something we cannot change about ourselves.”
    @ 01m 06s
    May 23, 2025
  • Data Ownership Dilemma
    Gideon Nave discusses the implications of data ownership and consent in the digital age.
    “If you're not paying for the product, you are the product.”
    @ 02m 23s
    May 23, 2025
  • Regulation and Genetic Data
    The need for regulation in handling sensitive genetic data is highlighted as crucial for society.
    “We have to pay a price for genetic data.”
    @ 07m 26s
    May 23, 2025

Episode Quotes

  • Genetic data is something we cannot change about ourselves.
    23andMe Bankruptcy: What Happens to Your Genetic Data?
  • If you're not paying for the product, you are the product.
    23andMe Bankruptcy: What Happens to Your Genetic Data?
  • We have to pay a price for genetic data.
    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

  • Informed Consent04:01
  • Data Sensitivity05:13
  • Regulatory Needs07:52
  • Customer Control08:35

Words per Minute Over Time

Vibes Breakdown

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