Lawmakers Raise Concerns Over 23andMe Bankruptcy and Genetic Data Privacy
As genetic testing company 23andMe navigates Chapter 11 bankruptcy, leaders of the U.S. House Committee on Energy and Commerce are demanding clarity on how the company will handle the sensitive genetic data of millions of customers.
In a formal letter sent Thursday to interim CEO Joe Selsavage, Republican Representatives Brett Guthrie, Gus Bilirakis, and Gary Palmer outlined their concerns. They specifically questioned how customer data will be protected if the company is sold and whether users can truly delete their personal information.
Customer Privacy at Risk Amid Sale Talks
The lawmakers referenced reports from customers who faced difficulties removing their data from 23andMe’s systems. The letter also pointed out that, unlike traditional healthcare providers, direct-to-consumer genetic testing firms like 23andMe aren’t bound by HIPAA, the federal law governing health information privacy.
“This treasure trove of sensitive genetic data is at risk,” the letter warns, “especially given the lack of comprehensive federal protections and the uncertainty surrounding company asset sales.”
History of Data Breaches and Legal Trouble
This latest scrutiny comes just months after 23andMe settled a $30 million lawsuit related to a high-profile data breach. The incident intensified concerns around data governance and consumer protection in the growing field of personal genomics.
CEO Shake-Up and Future Ownership
23andMe filed for bankruptcy in March, shortly after co-founder and CEO Anne Wojcicki stepped down, revealing plans to re-enter as a private bidder for the company. The leadership shake-up adds another layer of complexity to an already uncertain future for the brand.
Conclusion: A Tipping Point for Genetic Data Regulation?
With mounting pressure from Congress and a lack of standardized privacy laws, the 23andMe case may become a landmark moment for biotech accountability. Lawmakers and consumers alike are now watching closely to see whether the genetic data of millions will be adequately protected — or become a vulnerable asset in corporate negotiations.
