The company’s privacy policy says that in case of bankrupt, its privacy provisions for user data still apply.
The attorneys general for New York and California have urged 23andMe customers to remove their data from the DNA testing company’s website to prevent it from being sold, after the company filed for bankruptcy.
“New Yorkers’ genetic data is sensitive information that must be protected at all costs,” New York Attorney General Letitia James said in a
statement on March 25, just two days after 23andMe announced its bankruptcy filing.
The California-based company
filed for Chapter 11 bankruptcy protection on March 23 to facilitate the sale of its assets and restructuring while keeping its business running.
Many are concerned about how the company is handling the sensitive genetic data in its possession during this process, although 23andMe has said the process will not affect how it stores user data.
Following that, James has provided instructions for 23andMe customers to delete their accounts and personal information from the company’s website.
According to her statement, customers could change their preferences in their account settings if they had previously opted to have their saliva samples and DNA stored by 23andMe.
James also stated that customers who had consented to allow 23andMe and third-party researchers to use their genetic data for research can withdraw their consent from the account settings.
“23andMe’s bankruptcy announcement is concerning and I am urging New Yorkers to take action to safeguard their data,” she said, adding that those facing issues deleting their information from 23andMe’s website should reach out to her office for assistance.
California Attorney General Rob Bonta has also
urged customers to exercise their rights under state privacy laws to request the deletion of their data and have their genetic sample stored by 23andMe destroyed.
Bonta raised concerns about “the trove of sensitive consumer data 23andMe has amassed” as the company faces “financial distress” and is struggling to continue operating.
The Epoch Times has reached out to 23andMe for comment but did not receive a response by publication time.
The company has sought to reassure customers of its commitment to continue safeguarding user data. Mark Jensen, chair of 23andMe’s board of directors,
said on March 23 that “data privacy will be an important consideration in any potential transaction” to acquire the company.
According to its
privacy policy, if 23andMe goes bankrupt and changes ownership, its user data “may be accessed, sold, or transferred as part of that transaction” but the privacy provisions will still apply under the new entity.
In a
statement announcing its bankruptcy filing, 23andMe said that it has secured up to $35 million in temporary financing from JMB Capital Partners to keep its business afloat during the bankruptcy process.
The company said it plans to sell most of its assets through a process overseen by the court, which will involve soliciting bids from potential buyers over a period of 45 days. If multiple bids are received, an auction will be held to ensure the company gets the best possible deal. Any buyer will need to follow existing laws protecting customer data and obtain the necessary regulatory approvals, it stated.
23andMe is a California-based biotechnology company specializing in genetic testing services that allow customers to learn about their ancestral origins and medical health
In 2023, hackers
leaked the personal data of nearly 7 million 23andMe customers on an online forum, dealing a major blow to the company’s reputation. These data encompassed users’ names, sex, date of birth, genetic information, predicted relationships with genetic matches, ancestry reports, ancestors’ birth locations and family names, family tree information, and geographic locations.
The breach raised alarm among customers concerned about their privacy and how DNA-testing companies handle their data. The company eventually
agreed late last year to a $30 million settlement in a lawsuit related to the breach.
Jack Phillips, Rudy Blalock, and Naveen Athrappully contributed to this report.
