ARLINGTON, Va. (7News) — Genetic ancestry testing firm 23andMe filed for Chapter 11 bankruptcy over the weekend, citing declining demand for the company’s product. Attorneys general for D.C., Maryland, and Virginia have begun warning local consumers to delete their accounts.
Local attorneys general issued statements this week telling residents to take steps to download their ancestry or health-related data before deleting their accounts. They’ve provided this link on the company’s website with steps on how to do so.
23andMe said it plans to operate as normal throughout the bankruptcy filings, and its website showed kits for ancestry or health-related services are available for purchase as of Wednesday.
GENETIC DATA AND PRIVACY
California-based 23andMe is one of the largest and most recognizable companies of this type in the U.S., promising millions of users the ability to know their ancestry and health history through submitted saliva samples. With its Chapter 11 filing, the company said in a statement it’s looking to sell off a majority of its assets, some of which will be used to settle the October 2023 cybersecurity breach.
That sales process still needs approval from a federal bankruptcy court. Lawyers for the company were scheduled before a federal judge in Missouri on March 26.
Whoever buys, however, would need to follow state and federal policies related to protecting the genetic data, and 23andMe said it will not change how it stores or processes the DNA samples, according to a statement.
“Through the sale process, 23andMe will look to secure a partner who shares in its commitment to customer data privacy and will further its mission of helping people access, understand and benefit from the human genome,” a segment from the company’s bankruptcy frequently asked questions page read.
D.C., Maryland, and Virginia all have legislation requiring transparency and certain procedures when handling genetic data or DNA by direct-to-consumer companies. For example, Virginia’s privacy law requires genetic testing companies to delete consumers’ genetic data and biological samples.
However, attorneys general fear that a sale would include the saliva samples and DNA of some of its users. The information within the samples could provide those with access to important health and family lineage information.
In October 2023, 23andMe said they learned that data from some services that users opted into had been breached. At the time, reports claimed that some of the breached data had been sold on the dark web.
