23&ME users should delete their data as soon as possible, California’s Attorney General has warned, as the beleaguered genetic-testing company faces bankruptcy and sale.
“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,” AG Rob Bonta said in a statement on Friday.
Under California’s Genetic Information Privacy Act of 2022, companies must obtain explicit consent for the collection, use and disclosure of any genetic data. The law also guarantees consumers the right to access or delete their data at their choosing.
Of particular concern is the fate of the company’s massive bank of customer data, which could end up being used for purposes never envisaged by the company or by users themselves. The company has data on at least 15 million individuals, including a wide variety of information on personal health and ancestry.
Last year, there was widespread concern over a satirical article that suggested the company was selling its genetic data to a Chinese company, in a $10 billion deal.
As recently as 2020, 23&Me was valued at $6 billion, but a botched expansion into research and pharmaceutical partnerships, and an embarrassing data breach, caused the company’s stock to tank. Its share price has fallen from $320 a share to less than $2.
The company has now filed for Chapter 11 bankruptcy and its CEO, Anne Wojcicki, has resigned.
23andMe said in a press release it plans to continue operating throughout the sale process and that there “are no changes to the way the company stores, manages, or protects customer data.”