Republican Lawmakers Investigate 23andMe Bankruptcy and Data Privacy Concerns

Republican lawmakers affiliated with the House Committee on Energy and Commerce have initiated an investigation into the recent bankruptcy of 23andMe, driven by significant concerns regarding the protection of American citizens DNA information. The beleaguered genomics company has faced a tumultuous period since suffering an unfortunate data breach in 2023, which has set off a chain reaction of difficulties including layoffs, legal battles, and a substantial decline in its financial standing.
In March 2023, 23andMe filed for Chapter 11 bankruptcy and has since been actively seeking a buyer for its genetic data business. This move has raised alarms among lawmakers, who worry about the implications of selling sensitive medical and genetic data, particularly in light of the companys recent financial turmoil.
On Friday, a trio of CongressmenBrett Guthrie (R-KY), Gus Bilirakis (R-FL), and Gary Palmer (R-AL)sent a formal letter to the management at 23andMe. In their correspondence, they posed several critical questions about how the company has been managing and safeguarding the data of American consumers. The letter highlights a recent judicial ruling that allows 23andMe to sell the sensitive medical and genetic information belonging to its 15 million customers, which lawmakers consider one of the companys most valuable assets.
The letter expresses deep concern regarding the lack of a comprehensive federal data privacy law, noting that this absence puts Americans sensitive personal information at risk. The Congressmen are particularly troubled by reports indicating that some customers have encountered challenges when attempting to delete their accounts and personal information from the platform. They have demanded clarity from 23andMe regarding how many of these deletion requests have been successfully processed.
Moreover, the lawmakers have requested details about the vetting processes 23andMe has in place for prospective buyers, particularly whether these buyers have a proven history of adhering to data security protections and compliance with applicable data privacy laws.
It is important to recognize that while the Republican lawmakers are calling for better protections, they are partly responsible for the lack of a comprehensive federal data privacy law, as numerous efforts to pass such legislation have failed in the past.
In response to these inquiries, Gizmodo reached out to 23andMe for comment but has yet to receive a reply.
Despite the lawmakers concerns, 23andMe has reiterated its commitment to protecting customer data. In a press release from March, the company emphasized that any potential buyers of its data would be required to comply with its consumer privacy policy and all relevant laws regarding customer data treatment. This assurance aims to ensure that existing commitments to data privacy will endure after the sale of the business.
However, skepticism remains among consumers regarding the effectiveness of these assurances, especially in light of the prior data breach that compromised user information. For those who remain troubled by their data being stored with the company, the Electronic Frontier Foundation has provided guidance on how to request the deletion of personal information from the 23andMe database.