As 23andMe faces financial turbulence with its stock plummeting over 90% since going public in 2021, serious questions are emerging about the fate of millions of customers’ genetic data. The company, which has collected DNA samples from approximately 14 million people, is now confronting the possibility of bankruptcy or acquisition, raising critical concerns about data privacy and security. While 23andMe maintains that customer genetic information would be protected even in bankruptcy proceedings, privacy experts remain skeptical about these assurances.
The situation highlights a fundamental challenge in the consumer genetics industry: the disconnect between what customers believe they’re signing up for and the potential long-term implications of sharing their genetic information. Despite 23andMe’s privacy policy stating that customer data cannot be transferred without consent in a bankruptcy scenario, legal experts point out that bankruptcy judges have significant discretion in these matters. With genetic data potentially worth billions to pharmaceutical companies and other entities, the stakes couldn’t be higher for consumers who trusted the company with their most personal biological information.