The state of California's Health Department sent cease-and-desist letters to several personal genomic testing companies last week. I haven't been able to find out if any genealogy DNA companies received such letters. The companies do not need to be registered in California but such a letter would seemingly prohibit companies in other states from doing business with California residents.
The Health Department's actions were more of an opening salvo than a final knockdown in what could be a protracted fight over how consumers can access the information contained in their own DNA. Several DNA testing companies have publicly stated that they will ignore the letters because they believe that they are already in compliance with California laws.
You can read more on Wired's web site at http://blog.wired.com/wiredscience/2008/06/regulators-gene.html.