23andMe has filed for bankruptcy. What does this mean for your DNA data privacy?

Apnews - Mar 25th, 2025

The genetic testing company 23andMe has filed for Chapter 11 bankruptcy, leading to uncertainties about the future of customers' genetic data. Anne Wojcicki, co-founder and CEO, has resigned to position herself as an independent bidder as the company seeks new ownership. The bankruptcy filing includes plans to sell most of its assets and reduce real estate costs, while continuing operations. Despite assurances from 23andMe about data protection, privacy experts are advising users to delete their data due to potential risks from new ownership and hackers during this transitional period.

This development underscores significant concerns about data privacy, especially with sensitive information like genetic data, which cannot be changed once compromised. The U.S. lacks comprehensive federal privacy laws, leaving gaps in protection that could be exploited in such situations. Previous data breaches, including one in 2023 affecting 7 million customers, highlight the vulnerability of genetic data. While 23andMe claims to limit data sharing, experts warn about indirect methods of data utilization for targeted advertising and the potential for re-identification. Consumers are urged to take proactive steps to manage their data, including deletion, amid these ongoing privacy discussions.

Cybersecurity Bankruptcy Data Privacy Consumer Rights 23and Me Anne Wojcicki Genetic Data

Story submitted by Fairstory

RATING

7.2

Fair Story

Consider it well-founded

The article provides a thorough overview of 23andMe's bankruptcy and its implications for genetic data privacy. It is factually accurate, with most claims supported by credible sources. The article effectively balances the company's perspective with expert opinions on privacy concerns, although it could benefit from additional viewpoints, particularly from legal experts. Transparency could be improved by detailing the methodology for selecting expert opinions and disclosing potential conflicts of interest. The article is timely and addresses a significant public interest issue, with the potential to influence public opinion and policy debates on data privacy. While the article is clear and engaging, it could enhance reader engagement by incorporating interactive elements and providing further clarity on technical terms. Overall, the article responsibly addresses a complex and controversial topic, contributing to an important discussion on consumer data protection.

Accuracy

The news story about 23andMe's bankruptcy is largely accurate, with most claims verifiable through reliable sources. The filing of Chapter 11 bankruptcy by 23andMe is confirmed by the company's official statement and various news reports. The article correctly states that the bankruptcy filing does not alter how customer data is managed, a claim supported by 23andMe's public assurances. However, the story could improve by providing more detailed legal context regarding data protection laws, as it mentions the lack of a comprehensive federal privacy law in the U.S. without further exploration.

Balance

The article provides a balanced view of the situation, presenting both the company's perspective and the concerns of privacy experts. It quotes cybersecurity experts who highlight the risks to genetic data, thus offering a critical viewpoint. However, the article could enhance balance by including perspectives from legal experts on bankruptcy implications or more customer testimonials to provide a broader range of views.

Clarity

The article is generally clear and well-structured, with a logical flow of information. It effectively explains the implications of 23andMe's bankruptcy on customer data privacy. However, some sections could be more concise, and the article could benefit from a clearer distinction between factual reporting and expert opinion to improve reader comprehension.

Source quality

The sources cited in the article, including statements from 23andMe and expert opinions from cybersecurity professionals, are credible and relevant. The inclusion of a quote from a cybersecurity expert at NordVPN adds authority to the privacy concerns discussed. However, the article could benefit from additional sources, such as legal experts or industry analysts, to provide a more comprehensive view of the situation.

Transparency

The article is somewhat transparent, providing clear statements from 23andMe and expert opinions. However, it lacks detailed explanations of the methodology used to gather expert opinions or how these experts were selected. Additionally, the article does not disclose any potential conflicts of interest, such as financial ties between the experts and industry stakeholders, which would enhance transparency.