The House Committee on Energy and Commerce is investigating 23andMe’s decision to file for Chapter 11 bankruptcy protection, raising concerns that the company’s sensitive genetic data may be at risk of being compromised. A letter was sent to the company’s interim CEO, Joe Selsavage, by Rep. Brett Guthrie, Rep. Gus Bilirakis, and Rep. Gary Palmer, requesting answers about 23andMe’s data privacy practices. The committee’s request follows similar inquiries from the House Committee on Oversight and Government Reform and the Federal Trade Commission.
23andMe, known for its at-home DNA testing kits, became widely popular by offering customers insights into their genetic backgrounds and family histories. However, the company, once valued at $6 billion, has faced difficulties in generating recurring revenue and establishing a sustainable business model in research and therapeutics. After filing for bankruptcy in March, 23andMe’s assets, including its vast genetic database, are now on the market.
The congressmen expressed significant concern about the safety of Americans’ most sensitive personal information, particularly in light of the lack of a federal comprehensive data privacy law. They highlighted the vulnerability of DNA data, which is unique to each individual and cannot be fully anonymized. If misused, this data could lead to identity theft, insurance fraud, and other criminal activities.
While health information is protected under laws like HIPAA, 23andMe, as a direct-to-consumer company, does not fall under these protections. The congressmen urged the company to ensure the safety of its customers’ data throughout the bankruptcy process, given the uncertainty surrounding the sale of its assets.
In response, 23andMe has stated that it will continue to protect consumer data during the transaction and that all potential buyers must adhere to the company’s privacy policy and applicable laws. Customers are still able to delete their accounts and data through the company’s website, though some have reported difficulties in doing so. The congressmen emphasized the importance of honoring these deletion requests, regardless of the company’s change in ownership.
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