23andMe files for bankruptcy: What happens to customers’ DNA data?

• 23andMe filed for Chapter 11 bankruptcy, following a significant and announced a court-supervised sale process. The CEO resigned and the company assures no changes to data management during proceedings.
• California’s Attorney General urged customers to delete their genetic data, citing uncertainty about its future.
• Customers can delete their accounts and genetic data through 23andMe’s website.

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Genetic testing firm 23andMe filed for Chapter 11 bankruptcy protection, raising the question about what happens to the data of the company’s approximately 15 million customers.

In a statement announcing the bankruptcy Sunday, March 23, the board’s chair said they’d determined a court-supervised sale process is the best path forward, adding its CEO resigned effective immediately.

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The bankruptcy filing comes after 23andMe struggled to find a sustainable business model, with its core product being an at-home DNA testing kit offering “personalized genetic insights.”

According to TechCrunch, the company saw a more than 99% plummet from its $6 billion peak after going public in early 2021.

As the company goes through the bankruptcy proceedings, it released a “What This Means For You” guide saying there will be no changes to how it manages and protects people’s data. 

Upon joining, 23andMe users must explicitly affirm that the company may share their personal data and it’s possible people’s data could be included as part of a sale of the company. 

On Friday, March 21, ahead of the company’s bankruptcy announcement, California’s Attorney General Rob Bonta warned 23andMe customers to purge their genetic data from the company’s databases over uncertainty where it may end up.

“Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company.”

California Attorney General Rob Bonta

What will happen to 23andMe data?

Under California’s Genetic Information Privacy Act, companies must obtain explicit consent for the collection, use and disclosure of any genetic data. 

The 2022 law also guarantees consumers the right to access or delete their data at will.

Other states, including Arizona and Utah, passed privacy laws requiring a person’s consent before their genetic data is transferred from one entity to another.

In its bankruptcy announcement, 23andMe said any buyer of its assets would have to observe applicable privacy laws for customer data. 

The company also previously said any customer data it shares with other parties is anonymous and can’t be traced to individual users. 

Can I delete my 23andMe data?

23andMe does allow customers to delete their accounts.

Here’s how to do that:

• Log in to your account.

• Go to settings.

• Click on “23andMe data.”

• Click on “View.”

• Click on “Delete data” to submit a request.

• The company will send an email confirming the request to delete the data, which the user must then verify.

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The president of end-to-end encrypted messaging app “Signal” said in a post to X, “It’s not just you. If anyone in your family gave their DNA to 23andMe, for all of your sakes, close your/their account now.”

It's not just you. If anyone in your FAMILY gave their DNA to 23&me, for all of your sakes, close your/their account now. This won't solve the issue, but they will (they claim) delete some of your data.

And in the future avoid consumer DNA testing.https://t.co/6A1GuqvXGr

— Meredith Whittaker (@mer__edith) October 4, 2024

What’s next for 23andMe?

23andMe said it will continue operating while the bankruptcy court facilitates the sale process.

If granted approval, the company would solicit bids from potential acquirers over a 45-day period and potentially conduct an auction.