2025-03-26
23andMe Files Chapter 11, CA AG Urges Users Delete Data
On Sunday, March 23, 2025, Genetic testing company 23andMe announced its initiation of voluntary Chapter 11 bankruptcy "to facilitate a sale process to maximize the value of its business." The company also explicitly intends this action to resolve legal consequences of the October 2023 data breach that allowed 6.4 million customers' sensitive information -- including but not limited to "origin estimation, phenotype, health information, photos, [and] identification data" -- to be sold on the dark web. Due to concerns over the vulnerability of customers' data in this transition, California Attorney General Rob Bonta has urged all users to request their data be deleted; Californians are additionally protected by the Genetic Information Privacy Act (GIPA) and California Consumer Privacy Act (CCPA), vesting consumers with the right to delete personal information and the right to revoke consent for storage and use of biological samples after initial genetic testing. 23andMe is not bound by the Health Insurance Portability and Accountability Act (HIPAA). The Electronic Frontier Foundation (EFF) notes that fewer than half of US states have data privacy laws, only some of which would require consumers' consent for their genetic data to be transferred in the event of the company's sale as outlined in 23andMe's privacy policy. The company's announcement states, "We believe in the value of our people and our assets"; Suzanne Bernstein, counsel at the Electronic Privacy Information Center, comments that "23andMe's most valuable asset is likely its trove of highly sensitive consumer personal data, including genetic data."
Editor's Note
The posts from the CA AG and the EEF include the steps to delete your 23andMe data. You also have an option to download your data if you wish. Make sure you review your settings for retaining your DNA sample (as in, destroy it), and your permissions for your genetic data to be used for research by third parties. Deleting your data also deletes your 23andMe account. If you decide to leave your data at 23andMe, keep an eye out for updated privacy/data protections, which will likely be accepted by your continued use of the service/leaving your data there.

Lee Neely
It is interesting to note the any customers of 23andMe who are based in the EU can exercise their Right to Erasure (better known as the right to be forgotten) under the EU General Data Protection Regulation (GDPR). Also, under GDPR, individuals' person data is not a company's "most valuable asset" but rather belongs to the individual in question and is their data that has been entrusted to the company.

Brian Honan
This is not the first time personal data has become an asset in bankruptcy proceedings. Back in 2009, Verified Identity Pass, Inc., which operated 'Clear' then, sold all the registered traveler data it collected for its airport checkpoints as part of its bankruptcy. Only strong legal rights to delete the data will prevent such a sale in the future. It appears that 23andMe allows for data deletion. It will be interesting and likely entertaining to observe the outrage that will ensue in a couple of years as some data centers engaged in machine learning and AI will inevitably fold, and companies will realize that they may no longer have access to or be able to delete, their proprietary training data and models.

Johannes Ullrich
Incidents like this are why I really struggle and to be honest no longer teach people how to protect their privacy. In today's highly connected world, it's impossible. Anytime you touch anything that is 'smart' or 'connected', your actions and lives are being recorded. Have Siri disabled on your phone? Doesn't matter, everyone next to you has it enabled. Walk in a parking lot and just about every modern car is recording who walks by the car. Your data is actively being collected by every entity possible. Then that data is then either hacked or sold to other entities (in this case both with 23andMe). I now teach people how to protect their digital lives with the assumption that your data is already out there and there is nothing you can do to get it back. I focus on behaviors like securing and monitoring all your financial accounts, credit freezes and IP Tax Pins with the IRS. It is the reality of the world we now live in.

Lance Spitzner
Just remember, data is the new gold, and it will continue to be monetized even in bankruptcy. Laws aside, take charge of your information and request that it be removed from company systems.

Curtis Dukes
Years ago my daughter gave my wife and me gifts of 23andMe testing, probably because during her teenage years I accused her of not being genetically related to me at all; After the results came in, I went through the deletion process. It wasn't trivial to do but not that hard, worth doing.

John Pescatore
What could possibly go wrong? While 23andMe has been unable to find a legitimate and sustainable business model around this data, one expects that there will be multiple "data brokers" bidding for this data. When sharing your PII, consider the long term viability of the enterprise to which you are surrendering it. I tend to agree with my colleagues that, in the light of all the unregulated, not to say unscrupulous, data brokers, privacy is dead. However, in order to resist fraudulent use of our PII, I continue to urge everyone to lock access to their information on the three major credit bureaus and monitor all activity to their accounts on a timely, perhaps daily or even real time, basis. Prefer to pay online using proxies, e.g. PayPal, Apple Pay, Google Pay. Prefer financial institutions that confirm all transactions and changes out of band. (We really need a regulation that requires the credit bureaus to notify us whenever our information is accessed or sold in bulk.)
