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In a developing situation, the House Committee on Energy and Commerce is probing the recent Chapter 11 bankruptcy filing by 23andMe, expressing worries that its sensitive genetic information might be endangered. This scrutiny comes on the heels of a series of data privacy concerns surrounding the company.
Representatives Brett Guthrie of Kentucky, Gus Bilirakis of Florida, and Gary Palmer of Alabama, reached out to interim CEO Joe Selsavage on Thursday to demand clarification on the company’s data management and privacy policies by May 1. Their concern mirrors recent communications from both the House Committee on Oversight and Government Reform and the Federal Trade Commission, which have also sought information from 23andMe.
23andMe gained significant public attention with its home DNA testing kits, providing users insights into their ancestry and genetic backgrounds. Although at one point the company was valued at approximately $6 billion, it has since faced challenges in securing consistent revenue and expanding into profitable research and therapeutic ventures.
After its bankruptcy filing in March in a Missouri federal court, the organization is now in the process of selling its assets, including its large collection of genetic data.
In their correspondence, Guthrie, Bilirakis, and Palmer expressed their serious concerns regarding the protection of sensitive personal information of Americans, particularly in the absence of comprehensive federal data privacy legislation.
23andMe did not respond promptly to a request for comments regarding these issues.
Additional Insights on Data Privacy Concerns
In recent years, 23andMe has faced a barrage of privacy-related issues, particularly following an incident in which hackers breached the privacy of approximately 7 million users in 2023. Such breaches are alarming, considering that DNA data is inherently sensitive due to its uniqueness, which poses risks of misuse for identity theft and other fraudulent activities, as noted by the National Human Genome Research Institute.
The House Committee on Energy and Commerce, which oversees data privacy matters, is particularly focused on these developments. Guthrie chairs the committee, while Bilirakis and Palmer lead the Subcommittee on Commerce, Manufacturing and Trade and the Subcommittee on Oversight and Investigations, respectively.
The Representatives pointed out that while health information is safeguarded under laws like the Health Insurance Portability and Accountability Act (HIPAA), companies that provide direct-to-consumer services, such as 23andMe, often operate outside these protections. They voiced significant apprehension about the security of consumer data amidst the uncertainty of potential new ownership.
Despite these concerns, 23andMe has maintained that its policies regarding consumer data management and protection will remain unchanged during the bankruptcy proceedings. The company also stated in a March announcement that any prospective buyers would need to adhere to its privacy policy and relevant laws concerning customer data handling.
Additionally, customers of 23andMe retain the ability to delete their accounts and associated information through the company’s website. However, the congressmen noted reports suggesting that some users have encountered obstacles in executing these deletion requests.
They concluded by emphasizing that regardless of changes in company ownership, it is crucial that 23andMe honors customer requests for account access and data deletion.
WATCH: The rise and fall of 23andMe
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