The company’s privacy policy states that even in the event of bankruptcy, the privacy provisions for user data will still be upheld.
The attorneys general for New York and California have advised 23andMe customers to delete their data from the company’s website to prevent it from being sold following the company’s bankruptcy filing. New York Attorney General Letitia James emphasized the importance of protecting sensitive genetic data, urging customers to take action.
California-based 23andMe filed for Chapter 11 bankruptcy protection on March 23 to facilitate the sale of its assets while maintaining business operations. Despite concerns about how the company will handle user data during this process, 23andMe assured that it will not impact data storage practices.
Customers were provided with instructions by Attorney General James on how to delete their accounts and personal information from the website, including changing preferences for saliva samples and DNA storage. Customers who consented to their genetic data being used for research by 23andMe and third-party researchers were also advised on how to withdraw their consent.
California Attorney General Rob Bonta echoed the call for customers to exercise their privacy rights and request the deletion of their data from 23andMe. He raised concerns about the company’s collection of sensitive consumer data and its financial struggles.
23andMe emphasized its commitment to safeguarding user data during the bankruptcy process, with the company’s board chair stating that data privacy will be a priority in any potential transaction. The company’s privacy policy ensures that user data will still be protected under new ownership even in the event of bankruptcy.
Temporary financing of up to $35 million was secured by 23andMe to continue operations during the bankruptcy process. The company plans to sell most of its assets through a court-supervised process, ensuring compliance with customer data protection laws and regulatory approvals.
23andMe, a California-based biotechnology company specializing in genetic testing services, faced a major data breach in 2023, leading to the leak of personal data of nearly 7 million customers. The breach raised concerns about privacy and data handling by DNA-testing companies, resulting in a $30 million settlement related to the incident.
Contributions to this report were made by Jack Phillips, Rudy Blalock, and Naveen Athrappully.
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