By John Q. Hosedrinker 
Facing financial difficulties and a £4.59 million fine from the UK’s ICO for a 2023 data breach, 23andMe has filed for bankruptcy protection. Co-founder and CEO Anne Wojcicki has resigned, with the company now seeking a buyer under court supervision. While 23andMe assures customers that data remains secure, the California Attorney General advises users to delete their information. The company, once valued at $6 billion, has struggled to maintain profitability since its 2021 IPO and ultimately failed to successfully pivot its business model.
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23andMe’s recent filing for bankruptcy protection has understandably sent shockwaves through its customer base. The news has prompted a flurry of activity, with many users rushing to download or delete their genetic data, fearing the worst for their private information. The California Attorney General’s recommendation to delete accounts highlights the significant privacy concerns surrounding this situation.
The ease of deleting one’s account is a point of contention. While users can technically delete their data, the question remains whether this truly removes it completely or if it has already been sold or transferred to third parties. The potential for nefarious use of this extremely sensitive data, collected under the auspices of a now-failing company, is a major worry. The idea that this data, once held under a contractual agreement with a company that no longer exists, could find its way into the hands of governments or large corporations is understandably unsettling.
The once niche service, once appealing to genealogy enthusiasts and population geneticists, now finds itself embroiled in a controversy that has far-reaching implications. The fear of genetic data being sold to the highest bidder is very real, creating a sense of betrayal among users who trusted the company with their most intimate information. This situation evokes unsettling comparisons to the failures of cryogenic preservation companies, where the promises of the future were shattered by the reality of bankruptcy. The implications for the future of targeted advertising, potentially fueled by this vast trove of genetic data, adds another layer to this already concerning situation.
The failure of 23andMe raises serious questions about the ethics and risks associated with sharing DNA information with for-profit companies. Some suggest that only companies with a strong track record, like Ancestry.com, should be considered for DNA testing. This sentiment is further fueled by concerns that 23andMe might have already sold user data to offset their financial difficulties, even before this bankruptcy filing. The company’s supposed “maintenance” downtime only increases suspicions about a mass exodus of users trying to delete their profiles, and the potential scramble to secure data before it’s sold off.
The concerns extend beyond simple data breaches. Many users point out the potential for their genetic predispositions to be exploited by insurance companies, impacting their ability to secure affordable healthcare. The long-term ramifications for the use of this data in ways not initially envisioned, and perhaps not legally permissible, are deeply troubling. This highlights a broader issue: the invasive nature of data mining in the context of personal genetics, and the often unforeseen consequences of sharing such personal information with corporations.
Despite assurances of anonymization, the potential for such anonymization to fail, as has happened in the past, looms large. Users are rightfully concerned about the complete deletion of their data and the possibility of backup copies residing on the company’s servers, potentially available to future purchasers. The fear of data being sold off to entities in countries with lax data protection laws or different ethical standards is palpable. Some users even express the belief that the sale of user data has been an ongoing practice, a component of the company’s business model all along, regardless of any opt-out options.
The bankruptcy of 23andMe serves as a cautionary tale. It underscores the potential risks involved in sharing highly personal genetic information with corporations. Even if a company’s initial intentions are sound, the realities of financial instability and the ever-evolving landscape of data usage and ownership raise serious concerns. The fact that the company’s database of genetic data, once considered valuable, is now viewed as less valuable than browsing history highlights the volatility of this market and the uncertain future of such personally sensitive information. The potential for misuse, for exploitation, and for unintended consequences is very real, and this bankruptcy filing brings this stark reality into sharp focus.