House Committee Investigates 23andMe’s Bankruptcy and Customer Data Protection
The ongoing bankruptcy proceedings of genetic testing company 23andMe have drawn significant attention from federal lawmakers. Leaders from the House Committee on Energy and Commerce have launched an investigation into how the company’s financial troubles may affect the privacy and security of customer data.
Concerns Raised by Lawmakers
In a letter addressed to interim CEO Joe Selsavage, three Republican representatives—Brett Guthrie, Gus Bilirakis, and Gary Palmer—expressed their concerns regarding the protocols that 23andMe plans to implement surrounding customer information in the event of a sale. This inquiry comes amidst growing fears about the handling of sensitive genetic data.
Issues Surrounding Data Management
The letter highlighted reported difficulties experienced by some customers trying to delete their personal information from 23andMe’s platform. Lawmakers noted that companies like 23andMe, which operate within the direct-to-consumer genetic testing space, typically fall outside the protective scope of the Health Insurance Portability and Accountability Act (HIPAA).
Privacy Risks and Legal Protections
The representatives underscored the complexities of genetic privacy, pointing out the lack of uniform protections. “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 lawmakers stated in their correspondence.
Background on 23andMe’s Financial Situation
23andMe has been navigating turbulent waters since filing for Chapter 11 bankruptcy in March. Co-founder and CEO Anne Wojcicki announced her resignation during the filing, stating her intention to become a private bidder for the company’s assets. The company previously faced scrutiny over data management issues, having settled a significant data breach lawsuit for $30 million last year.
Conclusion
The situation surrounding 23andMe is still evolving, and the House Committee’s investigation may shed light on the future of customer data handling within the genetic testing industry. As the case develops, both customers and lawmakers remain vigilant about the potential implications for data privacy and consumer trust.