Genetic testing company 23andMe filed for bankruptcy in the US on Sunday, citing weak demand for its ancestry kits and a 2023 data breach that hurt its reputation. The company’s stock dropped 50% to 88 cents on Monday after co-founder Anne Wojcicki stepped down as CEO following multiple failed takeover attempts.
23andMe has assured that its data privacy policies will remain unchanged in case of a sale. These policies prohibit sharing user data with insurance companies and only allow law enforcement access with a warrant. Despite increasing interest from authorities in using genetic data for investigations, 23andMe has rejected all US law enforcement requests, as noted in its transparency report cited by TechCrunch.
However, privacy advocates warn that new ownership may have different plans for 23andMe’s extensive DNA database. The Electronic Frontier Foundation has urged the company to avoid selling to any buyer with law enforcement ties, fearing genetic data could be misused for indiscriminate police searches.
Speaking to Reuters, law professor Anya Prince said, “How the data is used is really the privacy policy that anybody who has used 23andMe clicks through and then accepts. But as we know, most people don’t read the privacy policies.”
On Friday, California Attorney General Rob Bonta advised customers to delete their genetic data due to 23andMe’s financial troubles. Social media users also shared instructions on how to erase their data. Prince highlighted that while deleting an account may reduce risks, it does not guarantee complete data removal, explaining:
“Once that data is out there, then, even if you requested your account to be deleted, they can’t find your information because it no longer has your name attached. So for most people that might be fine as long as their names (are) not attached.”
What can you do about your DNA data now?
According to AFP, customers worried about their data still have the option to delete their 23andMe account. The company’s privacy policy allows users to permanently erase their data from its servers, though certain details, such as genetic information, may be retained due to legal requirements. Users can request deletion by navigating to the “23andMe Data” section in settings, after which the process begins immediately.
Following the bankruptcy filing, California Attorney General Rob Bonta urged customers who have submitted their DNA to remove their genetic data from the platform. He stated:
“Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company.”
While the U.S. lacks strong national data privacy protections, California has specific laws governing user data handling.
Washington Post tech columnist Geoffrey Fowler also advised users to delete their information, warning:
“If you’re one of the 15 million people who shared your DNA with 23andMe, it’s time to delete your data.”
Fowler highlighted the risk that user data “could get sold or transferred to a new company, which might want to use it for new purposes.”
On Monday, 23andMe’s stock price dropped nearly 50% to 92 cents in Wall Street trading.
(With inputs from AFP, Reuters)
