23andMe Declares Bankruptcy and What It Means for You

News Summary

23andMe, the leading DNA testing company, has declared bankruptcy, raising concerns among its 15 million customers about the safety of their genetic data. California’s Attorney General has suggested that users delete their genetic data as a precaution. In the wake of a significant data breach and a decline in company value, consumers are urged to safeguard their personal information. As the company navigates the bankruptcy process, it’s essential for customers to understand their rights and take action to protect their privacy.

23andMe Files for Bankruptcy: What You Need to Know

Oh boy, the news fresh off the presses is that 23andMe, the well-known company that helps folks uncover their DNA secrets, has officially declared bankruptcy. This all happened on a Sunday, and now the company is gearing up to head into bankruptcy court, where they’ll be working on the sale of their assets. For many people, especially the 15 million who have shared their saliva samples to learn about their ancestry or potential health risks, this situation raises some eyebrows and a fair amount of concern.

California Steps In

In light of this surprising turn of events, California’s Attorney General, Rob Bonta, has stepped up to make sure consumers are aware of their rights. He’s sent out a privacy “consumer alert,” urging all 23andMe customers to delete their genetic data as a precautionary measure. Keeping your information safe is super important, especially when it comes to something as personal as your genetic makeup.

The Importance of Your Genetic Data

With the current situation at 23andMe, you might be wondering what to do with your data. Attorney General Bonta reminds everyone that you have the right to request the deletion of both your genetic data and any genetic samples the company holds. Even though 23andMe has assured customers that there will be “no changes” in how they protect consumer data during the bankruptcy process, privacy experts are a bit worried. There’s always a slight risk that your information could be accessed or used in ways you never intended if you don’t take action.

23andMe’s Winding Journey

This latest development follows a challenging few years for 23andMe. The company went public in 2021 with hopes high, but sadly, its value has waned from a staggering $6 billion to just about $50 million. To make matters worse, a significant data breach earlier this year exposed the data of around 7 million customers. That breach included sensitive details like family trees, birth years, and geographical locations—yikes!

In September 2023, during this tough period, the company’s board of directors resigned after rejecting ideas from former CEO, Anne Wojcicki, about taking the company private. In a twist of fate, Wojcicki too stepped down the same day they filed for bankruptcy and now has plans to try to buy the business, even amidst the storm.

Proceeding with Caution

Now, as the company works to sell itself during the bankruptcy process, it plans to keep operating. But this has left many consumers on edge. Privacy experts worry that if 23andMe is acquired, there could be potential issues involving the access, sale, or transfer of customers’ genetic data. It’s important to note that customer data could be viewed as a company asset during transactions like bankruptcy or mergers, which understandably raises concerns among existing customers.

Your Rights as a Consumer

With the California Consumer Privacy Act in place, residents of the Golden State have solid protections when it comes to their data. If you’re a customer who wants to cut ties with 23andMe, it’s crucial to know that you not only can delete your genetic data, but also revoke consent for any research usage through your account settings. Before you request deletion, remember to download your genetic data for your personal records—just in case!

Consider Family Ties

If you have family members who also submitted their DNA to 23andMe, you might want to consider the risks involved. Your genetic information can not only help trace ancestry but may also be used by insurers to make policy decisions. Law enforcement may gain access to genetic information as well, although 23andMe requires a warrant to share customer data, which is a silver lining in this murky situation.

Final Thoughts

As consumers grapple with the implications of 23andMe’s bankruptcy announcement, it’s essential to stay informed about your rights regarding genetic data. The Attorney General’s office has expressed that everyone, especially the folks in California, should give serious thought to deleting their genetic information given the unpredictable nature of the company’s future.

In light of all this, it’s best to stay proactive and really consider your next moves. Make sure you’re safeguarding your private data because with genetic information, you never know who could be watching!

Deeper Dive: News & Info About This Topic

• Reuters: 23andMe Files for Chapter 11 Bankruptcy
• Washington Post: 23andMe DNA Privacy Concerns
• New York Times Wirecutter: 23andMe Data and Bankruptcy
• Desert Sun: How to Delete 23andMe Data
• Wikipedia: 23andMe