23andMe files for bankruptcy; what does that mean for customers

The genetic testing company 23andMe has filed for bankruptcy protection.

The company said in the bankruptcy announcement that it will continue operating the business as usual as it tries to “facilitate a sale process to maximize the value of its business.”

23andMe said it is suffering from operational and financial challenges.

It asks the courts to allow the sale of all of its assets through the Chapter 11 plan and will look for qualified bids over 45 days once it gets permission to proceed.

One question customers may ask is — what happens to their data once the company is sold?

23andMe officials said, "Any buyer will be required to comply with applicable law with respect to the treatment of customer data and any transaction will be subject to customary regulatory approvals, including, as applicable, approvals under the Hart-Scott-Rodino Act and the Committee on Foreign Investment in the United States."

23andMe cut about 200 people from its payroll or about 40% of its employees.

The company is most known for its at-home DNA testing kit which offers “personalized genetic insights” which 23andMe claims can indicate potential health issues such as Alzheimer’s or cancer.

It tried to change its pay once plan into a subscription where the company claimed it would give continued feedback and personalized wellness plans. It also tried to sell data licenses to pharmaceutical companies to assist in drug-development.

More than 15 million people gave 23andMe, which could be sold as part of the bankruptcy case.

California Attorney General Rob Bonta told those who have given their samples to 23andMe to submit a request to the company to have their genetic data deleted and any samples be destroyed.

He provided the following steps to take:

1. Log into your 23andMe account. 
2. Go to the “Settings.”
3. Scroll to “23andMe Data” at the bottom of the page. 
4. Click “View.”
5. Download your data if you want a copy.
6. Go to “Delete Data.”
7. Click “Permanently Delete Data.” 
8. Confirm your request via the email sent to you by 23andMe.

If you want to have your saliva sample destroyed, you can also find that request under preferences.

If you allowed 23andMe to provide your genetic data to third-party researchers, you can remove that consent under “Research and Product Consents.”

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