23andMe, the once-celebrated genetic testing company, has filed for Chapter 11 bankruptcy in the Eastern District of Missouri, raising alarms about the fate of its vast collection of genetic data. On March 23, 2025, co-founder and CEO Anne Wojcicki announced her resignation, compounding concerns for users as the company seeks to reorganize and find a potential buyer for its assets.
As 23andMe navigates these tumultuous waters, California Attorney General Rob Bonta has issued a stern reminder to users: they should consider deleting their genetic data. In his public alert, Bonta emphasized the rights of consumers under California’s privacy laws. "California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data," Bonta stated. With genetic information of over 15 million individuals in their database, the implications of a bankruptcy sale could be significant for privacy and user consent.
The company has faced mounting financial difficulties, attributes to a series of misfortunes including a massive data breach in 2023. This breach exposed the personal data of millions of individuals, leading to a class action lawsuit that 23andMe eventually settled for $30 million. To complicate matters further, share prices have plummeted, and the company reported debts of over $2.3 billion last November—all resulting in Wojcicki's recent departure.
"Data is data — once it's out there, it's very hard to control," remarked biomedical researcher James Hazel in a 2019 interview, highlighting the perpetual risk to user information. His concerns resonate now more than ever as 23andMe actively searches for a buyer, a situation that could potentially place its customers' sensitive genetic data in the hands of a new owner.
Amid the unfolding events, 23andMe has assured users that safeguarding customer data remains a priority. Over the last decade, the company has become synonymous with at-home DNA testing, initially launching with the promise of providing insights into users' genetic backgrounds and health predispositions. After going public through a SPAC merger in 2021, its valuation soared to earlier highs, but that growth has since withered away.
Concerned users looking to protect their personal information are encouraged to delete their accounts, a process that can be initiated through the account settings on the 23andMe website. Users can download their genetic data before proceeding with account deletion to retain some control over their personal information. According to the company's privacy policy, however, some data—including genetic information and basic identifiers like birth date—must still be retained for compliance with legal obligations.
The bankruptcy proceedings present a worrying intersection of corporate failure and consumer privacy. 23andMe has publicly stated that customer data privacy will be a pivotal consideration in any acquisition process. Board Chair Mark Jensen emphasized, "We are committed to continuing to safeguard customer data and being transparent about the management of user data going forward," as he addressed stakeholders after filing for bankruptcy.
While discussions of privacy remain a top priority, the critical nature of the situation cannot be overstated. Users need to act swiftly to ensure their genetic data is not inadvertently transferred to potential new owners without their consent. Non-compliance with deletion requests could mean significant legal and ethical implications for both the company and users.
In light of the shifting landscape at 23andMe, it’s essential for individuals to understand their rights as data subjects. Users should stay informed and proactive about managing their genetic data privacy as the situation unfolds.
Although 23andMe has garnered a large quantitative presence in the biotechnology sector, the viability of its business model continues to come under scrutiny as revenues decline. Efforts to advance its research and therapeutics sectors have faltered alarmingly, further underlining the company’s desperation to stabilize its operations under Chapter 11 protection. Moreover, shares of 23andMe plunged below $1 as suspicion around the company's future crested.
Ultimately, while the company works to restructure and possibly rebound in a complicated marketplace, users must grapple with the realities of sharing genetic information in a privacy-centered world. With potential new ownership knocking at the door, questions around data usage, consent, and user rights will remain paramount. For now, it’s advisable for consumers to exercise caution and actively manage their profiles in a landscape fraught with uncertainty.
In conclusion, as 23andMe endeavors to navigate bankruptcy, the call from California attorney general Rob Bonta to delete personal data should not be taken lightly. Consumers must grasp their rights to privacy in the evolving narrative of biotechnology and corporate responsibility, with the stakes now higher than ever for personal genetic information.
