What users need to know about privacy and data after 23andMe's bankruptcy filing

Core Viewpoint - 23andMe has filed for Chapter 11 bankruptcy but intends to continue operations while restructuring its finances and has secured $35 million in financing for this process [3][4]. Company Overview - Founded in 2006, 23andMe has sold over 12 million DNA testing kits and has notable users such as Oprah Winfrey and Warren Buffett [3]. - The company has faced financial difficulties since 2021, including a significant workforce reduction of 40% in 2024 and the resignation of all independent directors [6]. Data Privacy Concerns - The bankruptcy filing has raised concerns about the handling of customer data, particularly genetic information, during the restructuring process [4][7]. - 23andMe's privacy policies indicate that personal information may be accessed, sold, or transferred during bankruptcy proceedings [8]. - A data breach in 2023 exposed personal information of 6.9 million users, although no genetic data was compromised [5]. Legal and Regulatory Context - Genetic information is treated similarly to personal information under privacy laws, with varying protections depending on the jurisdiction [10][11][12]. - In the U.S., there is a lack of a unified legal framework for consumer privacy, complicating the situation for 23andMe customers [12][13]. Future Outlook - 23andMe may successfully emerge from its restructuring, similar to other companies that have filed for Chapter 11 bankruptcy [9]. - The company could potentially expand licensing agreements with pharmaceutical firms to utilize customer data for research purposes [9]. Consumer Guidance - Customers are advised to consider deleting their accounts and withdrawing consent for the use of their data due to uncertainties surrounding the company's future [15][16]. - Legal experts emphasize the need for clearer regulations to protect consumer privacy, especially concerning genetic data [17].