Volkswacht Bodensee - US regulators tell 23andMe to protect genetic data

The pioneering US company, which sells a mail-back saliva test to determine ancestry or certain health-related genetic traits for less than $200, filed for bankruptcy this month and is looking for a buyer two years after hackers gained access to millions of profiles.

"Any bankruptcy-related sale or transfer involving 23andMe users' personal information and biological samples will be subject to the representations the company has made to users about both privacy and data security," FTC Chairman Andrew Ferguson said in a letter to the company's bankruptcy trustees.

Ferguson noted that 23andMe assures users that the company does not share their personal information with third parties, including police, without user permission or valid court orders.

The FTC has powers to protect consumers from unfair, deceptive, or fraudulent business practices and investigate suspected violations.

The bankruptcy announcement on March 23 prompted warnings for 23andMe customers to ask the company to delete their data to safeguard privacy.

At its height a few years ago, the DNA testing craze saw millions of consumers rushing to discover their ancestry and health information, with tests from 23andMe becoming popular holiday gifts.

The Silicon Valley-based company, which went public in 2021, claims 15 million customers and has seen its sales decline in recent months as the testing craze faded and the company suffered a data breach.

Faced with the difficulties, 23andMe announced the dismissal of 40 percent of its staff in November, about 200 people. It also suspended its research programs.

23andMe has agreed to pay approximately $37.5 million to settle claims related to the 2023 data breach.

The hacking incident saw 6.9 million accounts affected, of which 5.5 million contained information on genetic matches.

Using customers' old passwords, the hackers compromised data that included names, sex, birth year, location, photos, health information, and genetic ancestry results.

M.Schneider--VB