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23andMe confirms hackers stole ancestry data on 6.9 million users
(techcrunch.com)
This is a most excellent place for technology news and articles.
I don't see how government vs private makes any difference.
A baby isn't capable of informed consent, so their DNA shouldn't be collected unless it's required for some medical reason (and then the sample should be immediately destroyed and no records kept).
If an adult, however, wants to voluntarily give these folks a DNA sample... well that's their choice. I'm not surprised it ended poorly.