Investigations by the House Committee on Energy and Commerce into 23andMe’s bankruptcy are focusing on potential implications for customer data privacy. The inquiry is spearheaded by Republican Representatives Brett Guthrie, Gus Bilirakis, and Gary Palmer, who are seeking clarity on how the genetic testing company plans to manage user data amidst financial turmoil.
Concerns Surrounding Customer Data
A letter addressed to interim CEO Joe Selsavage was sent by the representatives, outlining several critical inquiries regarding data handling. The correspondence highlights reports from customers facing challenges in deleting their data from the 23andMe platform. Furthermore, it emphasizes that companies like 23andMe are not typically shielded by the Health Insurance Portability and Accountability Act (HIPAA), raising serious questions about data protection standards.
Legal and Regulatory Challenges
The representatives expressed alarm over the current legal landscape, characterized by inconsistent state laws governing genetic privacy. They noted, “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.”
Background on 23andMe’s Financial Situation
23andMe recently filed for Chapter 11 bankruptcy in March. This came after the company settled a data breach lawsuit for $30 million the previous year. Following the bankruptcy announcement, co-founder and former CEO Anne Wojcicki stepped down to pursue opportunities as a private bidder for the company.