23andMe bankruptcy raises questions about Canadians’ genetic data

Canadians who have used 23andMe to learn more about their family ancestry may be wondering what happens to their data after the company filed for bankruptcy.

The genetic testing company announced on Sunday that it had initiated Chapter 11 proceedings in the U.S. Bankruptcy Court to facilitate its sale.

“We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities,” said 23andMe executive Mark Jensen in a statement.

“We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand, and benefit from the human genome to live on for the benefit of customers and patients.”

He added that the company is committed to supporting its employees through the process.

This news comes alongside CEO Anne Wojcicki’s immediate resignation. She will continue to serve as a member of the company’s board.

The firm is currently seeking authorization from the court to begin the process of selling all of its assets. If approved, the company would then seek qualified bids over a 45-day process.

With over 15 million customers worldwide, some people online questioned what this means for everyone’s data.

“So uh, 15 million DNA samples are now just available to the highest bidder?” reads one post on X.

In an open letter on Sunday, 23andMe assured users that their data remains protected and that the bankruptcy filing doesn’t change how it stores, manages, or protects that data.

“Our users’ privacy and data are important considerations in any transaction, and we remain committed to our users’ privacy and to being transparent with our customers about how their data is managed,” reads the open letter. “Any buyer of 23andMe will be required to comply with applicable law with respect to the treatment of customer data.”

It adds that through the sale, it will search for a business partner that shares in its commitment to customer data privacy.

23andMe also reminded users that they can opt into and out of its research at any time by updating their consent status in their account settings.

“If you opt-out, we will stop using your information for research going forward (we cannot affect studies that have already been completed) and will discontinue the use of your data within 30 days,” explained the company.

Customers still have complete access to their accounts, genetic reports, and any stored data during the Chapter 11 filing.

People can still order genetic testing kits, however customers who bought one on or after March 23 will only have 24 hours to request a refund. Anyone who bought a kit before March 23 still has 30 days from the date of purchase to request a refund.

Last year, a Canadian class-action lawsuit was launched against 23andMe in response to a data breach that exposed users’ highly sensitive and valuable personal information.