SUNNYVALE, Calif. (Diya TV) — 23andMe, a genetic testing firm, has filed for Chapter 11 bankruptcy, which has raised concerns regarding the fate of the personal genetic information of its 15 million clients. The firm announced that it would sell all its assets, including its vast DNA database, to the highest bidder.
Anne Wojcicki, co-founder and CEO, has resigned after a bid to buy back the company was rejected. In a public letter, 23andMe assured consumers that there would be no short-term tweaks to data storage and safeguarding habits. Legal professionals, however, caution that genetic information might be auctioned to the highest bidder under a bankruptcy sale, thus changing privacy contracts.
It advises customers who worry about their privacy to erase their data. To accomplish that, users go to their 23andMe account, follow the link “Settings,” and then delete the data as requested. There were some complaints reported by users as they found some problems during deleting, such as receiving error messages and having delayed customer service.
The bankruptcy application comes after a series of misfortunes for 23andMe, with a major data breach in 2023 leaving the personal data of about 7 million consumers exposed. This resulted in dipping customer confidence and sales. Consequently, the firm dismissed 200 workers and shelved drug development initiatives to get back on its financial feet.
As the bankruptcy process continues, the future of millions of people’s genetic information hangs in the balance. State privacy laws and the initial privacy policy of the company will affect the treatment of customer information. But new owners might change those policies, so consumers must remain watchful over their data.
