Washington Post technology columnist Geoffrey Fowler told CNN, “The truth is that your data is now up for grabs.
“It could be up for grabs in a whole bunch of different ways. First of all, you’re now relying on this company that is now bankrupt to protect your data, to keep hackers out.
“And this is a company that has had big problems with that in the past. And second of all, and the biggest one probably, is it is looking for someone to sell that data to.
“And whoever they sell it to can choose new ways to use your data.”
Mark Jensen, 23andMe’s board chair, told NBC affiliate WXIA-TV that the company is “committed to continuing to safeguard customer data” and “data privacy will be an important consideration” in any sale.
However, Craig Konnoth, a professor at the University of Virginia School of Law, said certain terms of agreements on the privacy of 23andMe users’ information can change when the company’s assets are purchased.
“The use of customer information is basically governed by whatever the provisions in the privacy and use agreements are that 23andMe contracted with the customers, Konnoth told UVA Today.
“If those provisions get broken, it’s unclear that consumers would have any recourse because the company is going bankrupt.”
Konnoth said certain states like Virginia have strong laws to protect sensitive consumer information collected and stored by companies.
“I think going online, going in and deleting the data would be a very good idea,” he added.
23ANDME’S DOWNFALL
In recent years, 23andMe struggled to generate consistent revenue as fewer home testing kits were being ordered.
People only need their DNA tested once, which is a problem 23andMe never found a way to address.
In March 2024, the company formed a special committee of seven independent directors to evaluate 23andMe’s future.
The company reported a net loss of $667 million last year compared to a $312 million net loss in 2023.
We are committed to continuing to safeguard customer data and being transparent about the management of user data going forward.
Mark Jensen, chair board member of 23andMe.Nevertheless, all seven directors resigned last September due to differences with co-founder Anne Wojcicki and her strategic direction and voting power in the company.
Later that month, executives at 23andMe agreed to pay a $30 million settlement to customers whose data was affected by a data breach in 2023.
The breach became public in October 2023 when reports surfaced that users’ information from 23andMe had appeared on the dark web for sale.
Hackers accessed names, birth years, genders, and ancestry details, among other non-DNA information, according to court documents.
In December 2023, the company confirmed the leak, revealing that 6.9 million users’ personal data had been compromised.
Wojcicki stepped down as 23andMe’s chief executive a day after the company filed for bankruptcy.
Statements made by attorney generals about 23andMe's bankruptcy filing
Attorney generals in six states have urged 23andMe users to delete their genetic information from the company's website.
Rob Bonta, attorney general of California: “California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data. 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.”
Letitia James, attorney general of New York: “New Yorkers’ genetic data is sensitive information that must be protected at all costs. 23andMe’s bankruptcy announcement is concerning and I am urging New Yorkers to take action to safeguard their data. New Yorkers can follow instructions offered by my office to delete their data or destroy any DNA samples held by 23andMe. Anyone experiencing issues deleting their information stored with 23andMe should contact my office.”
Christopher Carr, attorney general of Georgia: “23andMe collects highly personal information from consumers. In a bankruptcy proceeding, this sensitive data could be considered an asset, and as such, it could be sold or transferred to a third party.”
Aaron Ford, attorney general of Nevada: “I urge Nevadans to access their accounts on 23andMe’s website and consider deleting their shared genetic data in order to ensure their privacy. 23andMe has indicated they will continue to honor such actions, and users should make use of this option as soon as possible.”
Aaron Frey, attorney general of Maine: “DNA is arguably an individual’s most sensitive data. 23andMe has made assurances regarding their data privacy practices, but I would urge consumers to consider deleting their genetic data while the company is facing this instability. My office will be following the bankruptcy closely to ensure 23andMe honors its data privacy commitments.”
John Formella, attorney general of New Hampshire: “Despite the bankruptcy filing, both 23andMe and any potential buyer remain responsible for protecting consumer data. Additionally, consumers can proactively protect their data by deleting their genetic data, requesting the destruction of their test sample, and revoking authorization for 23andMe to share their data with third-party researchers.”
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