In a significant turn of events, the bankruptcy of 23andMe has raised serious concerns about the privacy of genetic data, according to experts. On April 4, 2025, Erman Ayday, an assistant professor in the Department of Computer and Data Sciences at Case School of Engineering, highlighted the potential ramifications of the company's financial troubles on genetic data misuse.
Ayday warned that the fallout from 23andMe's bankruptcy could lead to leaked digital genomes being weaponized. This could manifest in various alarming ways, such as being planted at crime scenes, used for blackmail, or facilitating genetic discrimination. The implications of such actions could be profound, as they threaten the very foundation of trust that many users place in genetic testing services.
Meanwhile, in a separate but equally pressing matter, the ongoing legal battles surrounding video privacy laws are drawing attention to the complexities of data protection in the digital age. A recent ruling from the 6th U.S. Circuit Court of Appeals on April 3, 2025, dismissed a proposed class action against Paramount Global under the Video Privacy Protection Act (VPPA), a law enacted in 1988 to safeguard the privacy of consumers renting videos.
The case was brought by Michael Salazar, who alleged that Paramount improperly disclosed his personal information to Facebook without consent. The court ruled that the newsletter Salazar subscribed to did not qualify him as a "consumer" under the VPPA, as it was not considered audio-visual content. This ruling has sparked further debate about the applicability of the VPPA in today's digital landscape, where video content is ubiquitous and often free.
The VPPA allows consumers to assert claims against any "video tape service provider" for disclosing personally identifiable information about specific audio-visual materials to third parties without express consent, with penalties reaching up to $2,500 per violation. The law was originally enacted after a video store clerk leaked a list of movies rented by Judge Robert Bork, a U.S. Supreme Court nominee, to the press.
Salazar's lawsuit against Paramount alleged that the company had installed a tracking pixel from Meta Platforms, Facebook's parent company, on its 247Sports.com website. This tracking pixel allegedly allowed Facebook to collect data on users who also had Facebook accounts, raising significant privacy concerns. However, the majority opinion from the 6th Circuit, authored by Judge John Nalbandian, concluded that Salazar's subscription to the newsletter did not constitute a valid claim under the VPPA because it did not involve the direct consumption of audio-visual materials.
While the majority found that the VPPA's protections did not extend to Salazar's case, dissenting Judge Rachel Bloomekatz argued that the interpretation was too narrow. She contended that Salazar should be considered a consumer based on the plain meaning of the law, as Paramount is indeed a provider of video content.
This ruling aligns with a recent decision by the 2nd Circuit Court of Appeals, which allowed a similar case involving the National Basketball Association (NBA) to proceed. In that case, Salazar argued that his personal data was harvested when he signed up for a free newsletter and later viewed videos on the NBA's website. The 2nd Circuit concluded that he was a consumer under the VPPA, a decision that the NBA is now appealing to the U.S. Supreme Court.
The NBA's argument suggests that extending the VPPA to cover anyone who interacts with any business that provides video content—even free content—could jeopardize widespread data-use practices online. NBA lawyers have expressed concern that such a ruling would endanger the web economy, as it could lead to significant restrictions on how businesses collect and use consumer data.
The implications of both the 23andMe bankruptcy and the evolving legal landscape surrounding video privacy laws underscore the growing tension between technological advancement and consumer privacy rights. As more companies collect and utilize personal data, the need for robust legal frameworks to protect consumers becomes increasingly urgent.
Experts like Ayday emphasize that the potential for genetic data misuse is particularly alarming, given the sensitive nature of genetic information. As genetic testing becomes more mainstream, the risks associated with data breaches and misuse could have far-reaching consequences for individuals' privacy and security.
As the legal battles over video privacy continue, the outcomes of these cases may set important precedents for how privacy laws are interpreted in the digital age. With the rise of streaming services and online content consumption, the question of what constitutes a "consumer" under existing laws is more relevant than ever.
In light of these developments, consumers must remain vigilant about how their data is collected and used. As companies navigate the complexities of privacy regulations, individuals should be aware of their rights and the potential risks associated with sharing personal information.
The intersection of genetic data privacy and video privacy laws illustrates the broader challenges of protecting consumer rights in an increasingly digital world. As technology continues to evolve, so too must our legal frameworks to ensure that individuals' privacy is safeguarded against misuse and exploitation.
In conclusion, the bankruptcy of 23andMe and the ongoing legal challenges surrounding the VPPA highlight the critical need for comprehensive privacy protections in the digital age. As consumers navigate these complex issues, it is essential for lawmakers and businesses to prioritize privacy and security to build trust and confidence in the rapidly changing landscape of data use.
