Congress Scrutinizes 23andMe's Data Privacy Amid Bankruptcy

In a significant move, Republican lawmakers from the House Committee on Energy and Commerce have launched an investigation into 23andMe's handling of personal data. This inquiry comes on the heels of the genomics company's Chapter 11 bankruptcy filing, a consequence of a tumultuous period marked by a severe data breach in 2023. The breach led to a cascade of challenges, including legal battles, workforce reductions, and a sharp decline in the company's financial standing.

The lawmakers, including Congressmen Brett Guthrie, Gus Bilirakis, and Gary Palmer, have expressed deep concerns regarding the safety of Americans' DNA information. Their apprehensions are amplified by the absence of a comprehensive federal data privacy law, which has been a point of contention in legislative circles for some time. The letter sent to 23andMe highlights the company's right to sell its vast repository of sensitive genetic data, a decision recently upheld by a judge. This ruling has intensified worries about the potential misuse of such information.

A critical aspect of the investigation is the company's response to data deletion requests from customers. Reports indicate that some users have faced challenges in erasing their data, prompting the lawmakers to seek clarity on how these requests are managed. Additionally, the inquiry seeks to understand whether 23andMe has a robust vetting process for potential buyers, ensuring they adhere to stringent data security protocols.

Despite the scrutiny, 23andMe maintains that any prospective buyer must comply with its consumer privacy policy and relevant legal standards. However, given the company's history of data breaches, skepticism remains about the effectiveness of these assurances.

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