Genetic testing firm 23andMe appears to be scrambling to cover its bases after it was revealed that a hacker was able to access and leak the DNA data of roughly 6.9 million of its users, a large increase from the 14,000 it reported to the U.S. Securities and Exchange Commission in a court filing on Dec. 1.
23andMe recently sent an email to customers notifying them that the company updated its terms of service on Nov. 30 by revising its "Dispute Resolution and Arbitration" section.
Related: Hackers could use your stolen 23andMe DNA data as a weapon
“Important updates were made to the Dispute Resolution and Arbitration section to include procedures that will encourage a prompt resolution of any disputes and to streamline arbitration proceedings where multiple similar claims are filed,” the email states. “These updates will go into effect for customers 30 days from the date this email is received.”
An arbitration clause removes the right for a party to sue if a dispute occurs. Instead of appearing before a court, the party that feels like they were wronged would have to go through arbitration, which is a private dispute resolution process. The clause also removes the right for any party to appeal the decision.
“Dispute Resolution Period must include a conference between you and us to attempt to informally resolve any Dispute in good faith,” reads 23andMe's terms of service.
23andMe customers have already agreed to private arbitration of disputes in the company’s previous terms of service, and even waived their right to file a class action lawsuit.
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Even though the email sent to customers did not specify what those new changes were specifically to the "Dispute Resolution and Arbitration" section, only indicating in the email that the changes will "encourage a prompt resolution," a spokesperson for 23andMe did clarify to TheStreet that the informal resolution period mentioned in that section has been extended to 60 days.
It also appears that customers no longer have the ability to go to court to sue for damages if they weren’t able to settle on a negotiation after arbitration, which was specified in the previous terms of service.
Also, it seems that the language that informs customers that they may not file a class action lawsuit is now in all caps and shortened for clarity compared to the earlier version.
“TO THE FULLEST EXTENT ALLOWED BY APPLICABLE LAW, YOU AND WE AGREE THAT EACH PARTY MAY BRING DISPUTES AGAINST THE OTHER PARTY ONLY IN AN INDIVIDUAL CAPACITY, AND NOT AS A CLASS ACTION OR COLLECTIVE ACTION OR CLASS ARBITRATION.”
23andMe also told users in the email to notify the company within 30 days if they don’t agree with the terms. If they fail to notify the company within that time period, they will automatically be “deemed to have agreed with the new terms.”
This latest move from 23andMe comes after a recent report that a class action lawsuit against the company was growing in number as shocked customers learned the full extent of the data breach.
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