FTC: Customer details must remain private 23andMe bankruptcy

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Personal information must be kept confidential as genetic testing company 23andMe works its way through bankruptcy court, according to the leader of the Federal Trade Commission (FTC).

Meanwhile, at least two FTC members say they were fired wrongly from their posts, and they hope a federal court will agree.

The developments were the latest among the many moves in the nation’s capital as President Donald J. Trump and Congress establish their agendas via policy orders and legislation.

‘Privacy comes first’

FTC Chairman Andrew N. Ferguson sent a letter to the bankruptcy court expressing his and the FTC’s interests and concerns about the bankruptcy case of 23andMe.

Andrew N. Ferguson
_{© Federal Trade Commission}

The company has promised to keep confidential the personal genetic information it collects from customers who submit saliva samples for genetic testing. Along with cellular data, details include billing and payment information. So far 23andMe has continued that pledge, Ferguson said in his letter to attorneys involved in the case in the U.S. Bankruptcy Court for the Eastern District of Missouri.

“23andMe recognizes the unique sensitivity of the information it collects and maintains and has made direct representations to its users about how it uses, discloses, and protects their personal information, including how personal information will be safeguarded in the event of bankruptcy,” Ferguson wrote. “The company has promised, and continues to promise, that user privacy and choice are at the forefront of its business model. 23andMe tells its users that ‘privacy comes first,’ and that, ‘since day one, we’ve committed ourselves to protecting your privacy.’ Further, the company commits to its users that they are in control of their data, and that users can decide how their information is used and for what purposes—including honoring the right of users to delete their personal information at any time.”

Ferguson cited 23andMe’s published privacy policies, along with statements from former CEO and current board member Anne Wojcicki. Since filing for bankruptcy, the company’s public statements have indicated customer confidentiality is paramount, he said.

“The FTC believes that, consistent with (U.S. bankruptcy law), these types of promises to consumer must be kept,” Ferguson wrote. That applies to potential buyers as well, Ferguson said.

“These conditions would help protect users’ interests by ensuring that their data and personal information will be used consistent with 23andMe’s promises,” he wrote.

Trump to commissioners: You’re fired

Meanwhile, it appears the FTC and the White House may be in for a legal battle over the appointments of two commission members.

This month, commissioners Rebecca Kelly Slaughter and Alvaro Bedoya, both Democrats, were terminated by the president’s order. They have filed a federal lawsuit contesting their dismissal, citing federal law and a 90-year court precedent. In that case, President Franklin D. Roosevelt removed Commissioner William Humphrey, but a unanimous Supreme Court ruled that attempted removal was unlawful. Despite numerous challenges, that decision has remained binding law since then, Slaughter and Bedoya wrote.

Slaughter was appointed to the FTC by Trump during the president’s first term and confirmed in 2018, then re-nominated and re-confirmed by President Joe Biden in 2024. Her term is scheduled to expire in September 2029. Bedoya, was nominated by Biden and confirmed to a seven-year term that expires in September 2026, according to the complaint as published by protectdemocracy.org.

As of March 31, Ferguson and Commissioner Melissa Holyoak remain in office.

‘Afraid of our voices’

Slaughter and Bedoya have said they received their termination notices on March 18. Since then, both have spoken publicly about the issue.

Rebecca Kelly Slaughter
_{© Federal Trade Commission}

On March 26, Slaughter was invited to testify about potential harms to children, in the hearing “The World Wild Web: Examining Harms,” by the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade.

Alvaro Bedoya
_{© Federal Trade Commission}

“So why did the president try to fire me and Commissioner Bedoya last week? I can only assume that the president is — or his advisers are — afraid of our voices,” Slaughter said. She noted during the president’s inauguration, he was flanked by billionaires, and the FTC has various actions involving people such as Amazon founder Jeff Bezos; Mark Zuckerberg of Facebook and Meta; and Elon Musk, leader of carmaker Tesla and Trump’s leader of the Department of Government Efficency.

“With no opposition voices on the Commission, I fear for what will happen to everyday people and honest businesses and what corporate lawbreakers will be allowed to get away with,” Slaughter said.

‘Rule of billionaires’

Speaking with the Guardian, Bedoya recounted one of his last public statements denouncing high injury rates and working conditions at Amazon warehouses. The Guardian reported Amazon donated $1 million to the president’s inaugural fund, and an Amazon safety executive was nominated to lead the Occupational Safety and Health Administration.

“This isn’t about progressive versus conservative,” Bedoya said in the interview, published March 28. “This is about the rule of law versus the rule of billionaires.”