Genetic testing company 23andMe, once valued at $6 billion, has filed for Chapter 11 bankruptcy as it looks towards a potential sale. CEO Anne Wojcicki has stepped down after efforts to take the company private were unsuccessful. This bankruptcy raises concerns about the security of the company’s extensive customer data, consisting of personal genetic information.
Privacy advocates highlight the risks of sharing genetic data with any institution, especially when the ownership and management of that data may change following a potential sale. In light of these uncertainties, California attorney general Rob Bonta has issued a reminder that residents have the right to request the deletion of their data. However, customers in other states may not have the same protections.
Wojcicki’s proposal to take the company private was rejected by 23andMe’s board, leading to further instability, including the closure of its drug discovery unit and mass board resignations. Currently, 23andMe assures customers that it will continue normal operations during the sale, although concerns remain regarding future changes in data privacy policies.
Experts emphasize the importance of customers taking action. They recommend that all 23andMe users should download any data they wish to keep and proceed to delete their information from the platform as soon as possible. To delete genetic data, users can log into their profile, navigate to Settings, select 23andMe Data, and choose to download or delete their data.
23andMe has faced significant difficulties recently, including a major data breach in December 2023 that affected millions and resulted in a $30 million settlement from a class-action lawsuit. The company has struggled to maintain profitability and has seen a decline in demand for its testing kits.
As the situation unfolds, the fate of customer data hangs in the balance, subject to the decisions of whoever acquires the company. Legal experts note that any new owner would inherit existing contracts and obligations to current users, but the direction of data privacy and security remains uncertain.
