23Andme insolvency beneath congress examinations for buyer knowledge

Signs in 23andme headquarters in Sunnyvale, California, USA, on Wednesday, January 27, 2021.

David Paul Morris | Bloomberg | Getty pictures

The house committee for energy and trade examines the decision of 23Andme to submit the insolvency protection in Chapter 11, and said concerns that its sensitive genetic data “have the risk of a compromise”, CNBC has learned.

MP Brett Guthrie, R-Ky., MP Gus Bilirakis, R-Fla., And Rep. Gary Palmer, R.-Ala.

Congressmen are the youngest government officials who question concerns about 23andmes commitment to data security, since the house committee for supervision and government reform and the Federal Trade Commission have sent the company similar letters in the past few weeks.

23Andme exploded with his DNA test kits at home into the mainstream, which gave the customer an insight into their family history and genetic profiles. The company once had a highlight of 6 billion US dollars, but has been trying to achieve recurring income since then and to establish a lucrative research and therapeutic company.

After an bankruptcy application in the Federal Court in Missouri in March, 23andmes assets, including its huge genetic database, are up to sale.

“With the lack of a comprehensive law on the comprehensive federal protection and security laws of the federal government, we write to express our great concern about the security of the most sensitive personal information of the Americans,” said Guthrie, Bilirakis and Palmer in the letter.

23Andme did not react immediately to the request from CNBC for comment.

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23Andme has been flooded with data protection concerns in recent years after Hacker had accessed the information from almost 7 million customers in 2023.

DNA data is particularly sensitive because the sequence of every person is unique, which means that according to the National Human Genome Research Institute, it can never be fully anonymized. If genetic data fall into the hands of bad actors, it can be used to facilitate identity theft, insurance fraud and other crimes.

The house committee for energy and trade is responsible for questions that affect data protection. Guthrie is the chairman of the committee, Palmer is the chairman of the sub -committee for supervision and investigations and Bilirakis as chairman of the sub -committee for trade, manufacturing and trade.

The MEPs said that the health information of the Americans is protected according to legal provisions such as the law on the portability and accountability of health insurance or hipaa, direct companies such as 23 and 23 and 23 and 23 and are usually not covered in accordance with this law. They said they were “great concern” about the security of the company's customer data, especially in view of the uncertainty in the sale of the sales process.

23Andme has repeatedly announced that it will not change how it manages or protects consumer data throughout the transaction. In a similar way, the company said in a publication in March that all potential buyers had to agree to comply with their data protection directive and the applicable law.

“In order to present a qualified offer, potential buyers have to agree, among other things, to comply with the data protection directive of 23Andme and all applicable laws in relation to the treatment of customer data,” said 23andme in the press release.

23Andme customers can continue to delete their account and accompany data via the company's website. But Guthrie, Bilirakis and Palmer said there are reports that some users had difficulty.

“Regardless of whether the company changes property, we would like to ensure that customer access and the extinguishing requests are honored by 23Andme,” wrote the MEPs.

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