The genetic testing company 23andMe has filed for Chapter 11 bankruptcy, following a series of challenges including data hacks, a class action lawsuit, and internal leadership tensions. CEO Anne Wojcicki resigned as the company seeks a buyer. Concerns have arisen regarding the potential sale of user data during this transition.
The Electronic Frontier Foundation, a nonprofit focused on digital privacy, previously encouraged its followers to delete their data from 23andMe due to these concerns. The company collects various types of personal data, including registration details, genetic information, and self-reported data. However, 23andMe asserts that customer information will not be shared with any other entity without explicit consent.
A spokesperson for 23andMe stated that the company does not share data with employers, insurance companies, law enforcement agencies, or public databases. Despite this, users remain apprehensive about the security of their information. According to biomedical researcher James Hazel, once data is released, it becomes difficult to control.
Users wishing to remove their personal information can opt out via the “23andMe Data” section in Account Settings. However, 23andMe is legally required to retain some information to comply with legal obligations. For users involved in 23andMe Research, their genetic data will not be used in future research projects upon deletion.
23andMe initially launched in 2006 and had raised over $1 billion by 2021. However, a 2023 data hack exposed user data on the dark web, leading to a class action lawsuit settled for $30 million in September. In November, the company laid off 40% of its staff and disclosed debts of $2.3 billion. Despite generating revenue in 2023 and 2024, the company never turned a profit.
— news from Business Insider