00:00Coming up with Senator Blackburn's good questions, and by the way, thank you, Mr. Klein, for mentioning the need for a general privacy bill, which we badly need.
00:08So on this deletion issue, it's my understanding that 1.3 million consumers asked 23andMe to delete their genetic data.
00:17Many face technical issues.
00:19So how long is the backlog right now, and what are you doing to make sure all the requests are fulfilled?
00:26Senator, the good news is that today there is no backlog.
00:30We are current on all of the deletion requests.
00:33What did occur, you know, is when we filed for bankruptcy, and, you know, many state attorney generals requested or suggested to consumers that they delete their data at 23andMe, we did receive a significant amount of deletion requests.
00:48We quickly added additional staff, and, you know, basically were able to reduce that backlog.
00:54Thank you, and will you commit to ensuring that consumers will retain their right to have their genetic data deleted after the bankruptcy sale is completed by making deletion rights a condition of the sale?
01:07Both of the bidders and, you know, the bankruptcy sale of 23andMe, both Regeneron and TTAM Research Institute, have agreed to adopt the policies of 23andMe, the privacy policies.
01:17So the answer is yes?
01:18So that, you know, the answer is yes.
01:21Okay.
01:22During the bankruptcy process, how has 23andMe insured consumers could decide how information is used and for what purposes?
01:31That's what your website has promised consumers.
01:36Our consumers consent not only to a terms of service, a privacy policy, there are also separate consents for our customers to, if they so choose, to engage in research at 23andMe, and yet a, and then a separate consent to allow us to engage with research with third parties.
01:57And, you know, we make sure that customers have the right to actually opt in, we don't default those, customers are actually clicking, yes, they will want to conduct, or enable their data to be used for research purposes.
02:14These are, many customers understand, these are important for understanding disease and genetic conditions and life-saving medical treatments.
02:21Thank you, thank you, Professor Cohen, it's my belief that the privacy policies aren't meeting the privacy needs of consumers during bankruptcy, that's why I've worked with Senator Cornyn, I appreciate his leadership, and Grassley, to give consumers control over their genetic data with our bill, Don't Sell My DNA Act.
02:41Why is it so important that we require consent from the consumer before their genetic data is sold to another company with which they have no prior relationship?
02:52People are engaged in a trust relationship, you know, if my father gave me access to his medical records and say, son, I want you to look at this and be careful with this, and I went ahead and said, let me give it to somebody else without asking my dad, you'd look askance at what I was doing, the same thing is happening here.
03:06They're essentially transferring data and transferring a trust relationship to a new entity, and people have the right to know who they're dealing with and have the right to consent to it.
03:13Do you believe that the right to control one's personal genetic information should take precedence over maximizing returns for creditors in a bankruptcy proceeding?
03:25Well, I think that it would be nice for the creditors to get paid, Senator.
03:28In this instance, I think this information is so sensitive and so important, it's really important to protect people's information.
03:33Okay, thank you, and Professor Gottberg, do you believe that the current consumer privacy ombudsman system in bankruptcy proceedings is sufficient to protect consumers' most sensitive information?
03:47So the consumer privacy ombudsman is appointed to help the court in weighing the costs and the benefits of any particular sale of assets.
03:57If you permit personal consumer data to be sold outside of bankruptcy, it's permissible inside of bankruptcy as well.
04:06And so the consumer privacy ombudsman is just trying to weigh what would be the negative effects of that sale.
04:12Without an understanding of the price of privacy, so to speak, that's a very hard balancing act to perform.
04:20To my knowledge, there's been no final litigation to determine what the damages would be for an individual to have their privacy violated in that way.
04:28So it makes it really hard for the consumer privacy ombudsman to have an effective role there.
04:33Okay, and to end where I began with Mr. Klein's point, why is it so important that Congress enact a comprehensive privacy law?
04:44By the way, the same companies that were lobbying against one, because I'm also on the Commerce Committee, say 10 years ago, now want one because of the patchwork of laws that we now have in our states,
04:54which is very predictable, which I hope people will realize that we should need some AI rules of the road in place and tech rules of the law in place.
05:03And it's just the worst, that people just think they can lobby against things, and then all of a sudden they're like, oh, no.
05:11So tell me why we need a privacy law and how that would have helped here.
05:15So a greater predictability for companies when they're entering into agreements with consumers is always beneficial.
05:22So if companies know what the legal limitations are, then they can take that into account,
05:27and creditors can take that into account, whether an asset will be available before lending to the debtor.
05:33So it's important to have that law in place inside and outside bankruptcy.
05:36Oh, I'm sorry. I didn't mean to interrupt you. I thought you were done.
05:39All good. No, I'm not going over my time.
05:41Senator Moody.
05:45Thank you, Mr. Chair, and thank you for conducting this here.
