Users of 23andMe, a direct-to-consumer genetic testing platform, are advised to delete their personal data from the website following the company’s recent bankruptcy filing in the United States on March 23. This development is significant for several reasons:

1. What Happened to 23andMe?
   23andMe, which has collected genetic information from around 15 million users, faces financial difficulties and is on the verge of being sold off. Founded in 2006, the company initially focused on family ancestry and genetic traits but expanded to testing for genetic predispositions to diseases and even ventured into drug research. Despite going public with a $3.5 billion valuation in 2021 to fund its new direction, tough economic conditions and declining sales undermined its financial stability. The company laid off 40 percent of its workforce in October and risks being delisted from NASDAQ as its stock price dipped below $1.
2. Current Risks to Users
   In a statement to customers, 23andMe affirmed that its bankruptcy would not affect the handling and security of customer data, asserting that any potential purchaser would be legally bound to respect customer data. Despite this assurance, attorneys general from New York and California advised residents to delete their data from the website. Arthur Caplan, a medical ethicist, expressed skepticism about 23andMe’s ability to ensure data confidentiality after a sale, suggesting that a new owner might not adhere to previous promises, potentially compromising user privacy.
3. Legal Protections of 23andMe Data
   The US lacks a comprehensive federal data privacy law, unlike the European Union. This means 23andMe and similar companies operate outside the scope of the primary health record privacy law, HIPAA, since they are not classified as medical companies. Their data can also be accessed by law enforcement through legal channels, exemplified by the use of genetic data to identify the "Golden State Killer" in 2017.
4. Controversies Surrounding 23andMe
   Before its bankruptcy, 23andMe faced criticism for data security practices, including a significant data breach in 2023 that led to a $30 million settlement. The company has also been scrutinized for its scientific claims, particularly its ability to inform users about their ethnic heritage, which critics argue is overly exaggerated.
5. Potential Buyers
   As part of its bankruptcy proceedings, 23andMe has initiated a 45-day bidding period for its assets. Former CEO and co-founder Anne Wojcicki has stepped down to submit her own bid, expressing her continued confidence in the company’s future despite acknowledging the current challenges.
6. Deleting Your Data
   If you’re concerned about the privacy of your data, the process to delete your 23andMe account involves several steps: logging into your account, navigating to "Settings," selecting "23andMe Data," viewing your data, and then permanently deleting it. This advice aims to help users protect their personal information in light of 23andMe’s uncertain future.

Source: https://www.aljazeera.com/news/2025/3/26/why-are-users-of-23andme-being-urged-to-delete-their-data?traffic_source=rss