Congress has questions about 23andMe bankruptcy

Tech Crunch - Apr 19th, 2025
Open on Tech Crunch

The House Committee on Energy and Commerce is actively investigating the potential impact of 23andMe's bankruptcy on the security of customer data. Representatives Brett Guthrie, Gus Bilirakis, and Gary Palmer have reached out to the genetic testing company's interim CEO, Joe Selsavage, with questions regarding data handling in the event of a company sale. Concerns have been raised about the difficulties some customers face in deleting their data, and the fact that 23andMe, as a direct-to-consumer service, is not covered by HIPAA protections adds to the urgency of the inquiry.

The investigation highlights broader issues of data privacy and protection, especially given the sensitive nature of genetic information. 23andMe's recent history, including a $30 million settlement for a data breach lawsuit, underscores the potential risks involved. With co-founder and CEO Anne Wojcicki stepping down to become a private bidder after the company's Chapter 11 bankruptcy filing, the situation remains uncertain. The outcome of this investigation could influence future regulatory frameworks for genetic data privacy, amidst a patchwork of state laws and the absence of comprehensive federal guidelines.

Story submitted by Fairstory

RATING

7.6
Fair Story
Consider it well-founded

The news story effectively covers the congressional investigation into 23andMe's bankruptcy and its implications for customer data privacy. It is well-researched, with accurate and timely information, making it relevant to ongoing debates about genetic privacy and corporate responsibility. The story's strengths lie in its clarity and public interest, addressing significant issues that resonate with a broad audience. However, it could benefit from a more balanced perspective by including responses from 23andMe and additional expert opinions. The article is engaging and accessible, though it could enhance reader engagement with more interactive elements. Overall, the story provides a comprehensive overview of a complex issue, with minor areas for improvement in balance and source diversity.

RATING DETAILS

8
Accuracy

The news story is largely accurate, reflecting the ongoing congressional scrutiny over 23andMe's bankruptcy and its implications for customer data privacy. The story correctly identifies the House Committee on Energy and Commerce's investigation and mentions the specific representatives involved. It accurately reports the concerns about data handling and the lack of HIPAA protections for genetic information, which are valid issues given the company's circumstances. However, the story could have provided more precise details about the timeline and context of the bankruptcy filing and the previous data breach settlement. The mention of Anne Wojcicki's resignation and her intention to become a private bidder aligns with publicly available information, adding to the story's credibility. Overall, the facts presented are verifiable and supported by credible sources, but some additional context could enhance accuracy further.

7
Balance

The story presents a balanced view by highlighting the concerns of congressional representatives regarding data privacy without overt bias. It mentions the lack of HIPAA protections and the challenges customers face in deleting their data, which are significant issues in the context of genetic privacy. However, the story primarily focuses on the perspectives of the investigating representatives and does not provide a response or perspective from 23andMe or its interim CEO. Including a statement or comment from the company could have offered a more rounded view of the situation. Additionally, perspectives from privacy advocates or legal experts on the implications of the bankruptcy could have enriched the narrative.

8
Clarity

The story is clearly written, with a logical structure that guides the reader through the key points. The language is straightforward, making the complex issue of genetic data privacy accessible to a general audience. The mention of specific representatives and the focus on the investigation provides a clear narrative. However, the story could benefit from more detailed explanations of technical terms, such as HIPAA, to ensure all readers fully understand the implications. Overall, the clarity of the story is strong, with minor areas for improvement in explaining technical aspects.

8
Source quality

The story references credible sources, including named congressional representatives and official letters, which add to its reliability. The involvement of the House Committee on Energy and Commerce and the specific representatives provides authority to the claims made. However, the story could have benefited from a broader range of sources, such as statements from 23andMe, privacy experts, or legal analysts, to provide a more comprehensive view of the situation. The reliance on official documents and named individuals lends credibility, but additional voices could enhance the depth of reporting.

7
Transparency

The story is transparent about the congressional investigation and the concerns raised regarding data privacy. It clearly states the lack of HIPAA protections and the challenges in deleting data, providing a straightforward account of the issues at hand. However, the story could improve transparency by disclosing the methodology used to gather information and whether attempts were made to contact 23andMe for comment. Additionally, providing more context about the previous data breach and its impact on the company would help readers understand the broader implications of the bankruptcy.

Sources

  1. https://www.law360.com/articles/2327437/23andme-ch-11-sale-sparks-dna-privacy-oversight-battle
  2. https://oversight.house.gov/wp-content/uploads/2025/04/04.15.2025-23andMe-Letter.pdf
  3. https://customercare.23andme.com/hc/en-us/articles/30805135934615-Questions-related-to-23andMe-s-Chapter-11-Filing
  4. https://restructuring.ra.kroll.com/23andMe
  5. https://therecord.media/23andme-bankruptcy-house-investigation-data-concerns