Congress Investigates 23andMe’s Bankruptcy and Data Privacy Concerns
Overview of the Investigation
Leaders from the House Committee on Energy and Commerce are probing the ramifications of 23andMe’s bankruptcy on customer data security. This inquiry is particularly focused on how prospective sales of the genetic testing company could affect the handling of sensitive customer information.
Letter to 23andMe’s Interim CEO
Representatives Brett Guthrie, Gus Bilirakis, and Gary Palmer—members of the Republican party—formally addressed their concerns in a letter to Joe Selsavage, the company’s interim CEO. The correspondence includes inquiries regarding the protocols for safeguarding customer data amid the company’s financial restructuring.
Customer Data Management Issues
The letter highlights troubling reports from customers who have experienced difficulty removing their data from the 23andMe platform. This situation is exacerbated by the fact that companies like 23andMe are typically outside the protections of the Health Insurance Portability and Accountability Act (HIPAA), leading to increased vulnerability for consumers.
Concerns About Genetic Data Privacy
The representatives expressed their apprehension about the potential mishandling of sensitive genetic information: “Given the lack of HIPAA protections, the patchwork of state laws covering genetic privacy, and the uncertainty surrounding what happens to customer information should a sale of a company or customer data and information transpire, we are concerned that this trove of sensitive information is at risk of being compromised,” the letter states.
Background on 23andMe’s Financial Situation
23andMe has faced significant challenges recently, culminating in a Chapter 11 bankruptcy filing in March. The situation follows a data breach lawsuit settlement for $30 million that the company resolved last year. Co-founder Anne Wojcicki announced her resignation to pursue a private bidding opportunity for the company as it navigates this financial turmoil.
