23andMe Bankruptcy: Congress Investigates DTC Genetic Testing

Investigation into 23andMe's Bankruptcy and Data Security

Members of the House Committee on Energy and Commerce have initiated an inquiry regarding the potential impact of 23andMe’s recent bankruptcy filing on the privacy and security of its customer data.

Congressional Concerns Regarding Customer Data

Representatives Brett Guthrie, Gus Bilirakis, and Gary Palmer, all affiliated with the Republican party, dispatched a formal letter on Thursday to Joe Selsavage, the interim CEO of 23andMe.

This communication requests detailed answers concerning the company’s plans for safeguarding customer information in the event of a sale or acquisition.

Data Deletion Issues and HIPAA Limitations

The congressional letter highlights reports received from customers who have experienced difficulties in completely removing their data from the 23andMe platform.

It also points out that companies offering genetic testing directly to consumers, such as 23andMe, typically do not fall under the regulatory umbrella of the Health Insurance Portability and Accountability Act (HIPAA).

Potential Risks to Sensitive Information

“Considering the absence of HIPAA safeguards, the varied landscape of state genetic privacy laws, and the ambiguity surrounding the fate of customer data during a company sale or data transfer, we harbor significant concerns about the potential compromise of this highly sensitive information,” the representatives stated in their letter.

Recent Legal and Financial Developments

In the preceding year, 23andMe reached a settlement of $30 million to resolve a lawsuit stemming from a data breach incident.

Subsequently, the company filed for Chapter 11 bankruptcy protection in March, with co-founder and former CEO Anne Wojcicki announcing her resignation to pursue a private bid for the company’s acquisition.