The exact thing that happens to DNA profiles or genetic materials if your DNA testing company goes out of business will depend on certain factors.
However, companies are mandated to let customers know as well as provide them with options to get back their genetic data or have it expunged.
In most places, these options will include transferring it to another provider, getting the physical samples returned, or approximately destroying both the genetic materials as well as the digital data.
Nevertheless, DNA testing companies are advised to take great care when it comes to making sure all actions are in line with privacy laws to guarantee the safety of client information as well as keep their trust.
Factors That Determine What Happens to DNA Profiles and Genetic Materials If a DNA Testing Company Goes Out of Business
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Data Retention Policies
It is more or less the first line of defense for a DNA Testing Business especially since it is meant to determine vital things like the duration the company can hold data as well as conditions where it may be destroyed, transferred, or anonymized.
When coming up with these policies, it’s very important to take into account the lifecycle of the data—from collection to potential destruction or transfer in the event of business closure.
Coming up with explicitly clear retention policies will work to guarantee clients’ genetic materials are handled in the right way, limiting the risk of misuse or unauthorized access.
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Legal and Regulatory Requirements
One of the things to keep in mind is that these requirements vary from one location to another, and depending on your jurisdiction, you might be expected to meet certain requirements when it comes to the handling, storage, and destruction of genetic information.
For instance, DNA testing businesses in the United States are expected to conform with the Health Insurance Portability and Accountability Act (HIPAA), this is a regulation that governs how personal health information, such as genetic data, will have to be handled.
In Europe, this will be the General Data Protection Regulation (GDPR) that stipulates guidelines that guarantee data protection.
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Client Consent Agreements
You wouldn’t want to underestimate the importance of this factor when looking to determine what happens to DNA data if your company goes out of business.
Keep in mind that when clients provide their DNA for testing, they are presented with a consent form or ascent to terms of service that stipulate the ways their data will be used, stored, as well as disposed of. These agreements stipulate the exact things that will happen to clients’ data in a situation where the company closes.
A good number of modern DNA testing businesses provide clients with agreements that feature clauses that stipulate that the data will be securely destroyed, or it might provide clients with numerous choices that also include the return of their genetic material.
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Third-Party Involvement
It is also important to point out that a good number of DNA testing companies work with third-party laboratories, data storage providers, or cloud services to handle and store genetic information.
Keep in mind that the involvement of these third parties will inculcate other layers of complexity when it comes to what happens to the data and material once the business stops operating.
However, this information will most likely feature in the contract your DNA testing business signed with these third parties, especially within the clauses that govern data management.
According to industry reports, some third-party labs as per the contract signed tend to destroy samples upon the expiration of a stipulated period or transfer them to another designated entity.
As such, you must take time to evaluate as well as comprehend these contracts to guarantee that your client’s data is securely and appropriately taken care of.
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Company Succession Planning
This is an aspect of business planning most entrepreneurs try to avoid; however, it is quite essential since it refers to making the right preparations for the possibility that your DNA testing business might be sold, merged, or otherwise closed.
When a DNA Testing Business is acquired by another individual or company, the most likely scenario is that the new owners take up responsibility for the existing client data.
This might entail that services offered by the old company or owners continue uninterrupted, or that the data and materials be transferred to a new provider.
Howbeit, if your company is liquidated, you might be expected to conform with certain protocols meant to ensure that both the data and materials are securely destroyed or transferred.