Millions Of DNA Profiles At Risk As 23andMe Teeters On Bankruptcy Brink

Millions Of DNA Profiles At Risk As 23andMe Teeters On Bankruptcy Brink

The genetic testing company 23andMe, which has provided DNA analysis services to millions, has found itself grappling with potential bankruptcy, a situation that puts an untold number of customers' genetic privacy at risk. According to FOX 5 Atlanta, around 15 million people have submitted their DNA to 23andMe over the past two decades, and the company's financial instability might lead to their genetic data being put up for sale.

The company's fall from grace includes a plummeting valuation from a once-striking $6 billion when it went public in 2021 to a minuscule fraction of that today, as noted by Futurism. To compound the woes, 23andMe also suffered a significant data breach last year affecting 6.9 million customer accounts, and last month, the company's board resigned en masse sharply criticizing CEO Anne Wojcicki's leadership.

Both the future of the customers' DNA and their privacy are now in limbo. Given that 23andMe's privacy statement openly acknowledges the possibility of customer data being transferred in the event of a bankruptcy or acquisition, the protective assurances are shaky at best. "If we are involved in a bankruptcy, merger, acquisition, reorganization, or sale of assets, your Personal Information may be accessed, sold or transferred as part of that transaction," the company notes in its privacy statement, "and this Privacy Statement will apply to your Personal Information as transferred to the new entity." This has led to significant unrest among customers and privacy advocates alike, as reported by Futurism.

Federal protections like the Health Insurance Portability and Accountability Act (HIPAA) offer no refuge in this scenario as they do not cover data maintained by direct-to-consumer genetic companies, according to Anya Prince, a law professor at the University of Iowa, in an interview with NPR. Moreover, while customers can supposedly delete their data from the company's systems, the privacy statement reserves the right for the company to "retain Personal Information for as long as necessary," casting doubts on the permanence of such deletions, according to Futurism.

In the wake of these concerns, CEO Anne Wojcicki has declared a firm stance regarding customer privacy. "I remain committed to our customers’ privacy and pledge," Wojcicki stated in a September filing with the Securities and Exchange Commission, as she mulled over the prospect of taking 23andMe private to salvage the company. Despite her assurances, the timelines and realities of such a move, and its implications for data security, remain to be seen, as reported by Futurism.

SOURCE: hoodline