DNA testing firm 23andMe says ‘delays’ resolved after users rushed to delete data

NEW YORK – DNA testing company 23andMe said on March 25 it experienced website delays, after a wave of customers sought to delete their genetic data before the firm can be sold through a planned bankruptcy auction.

A company spokesperson said the site “experienced some issues and delays due to increased traffic” on March 24, in response to Bloomberg News questions about whether users were facing issues trying to close their accounts. Those problems have since been resolved, the spokesperson said, advising users to contact customer support if they continue to encounter trouble deleting data.

Still, while some said on social media on March 25 that they had succeeded in logging in and deleting their data, other people said they were still unable to access their accounts. 

Ms Ruthann Miller, 37, promptly received an e-mail from 23andMe when she sought to reset her password to log in to her account, but did not receive a verification code from the company that would allow her to do so, she said on March 25. 

Meanwhile, some customers said on social media they would keep their accounts and were not concerned about a possible sale of their data because the transaction will be overseen by regulators and a federal judge.

But Ms Miller is concerned that 23andMe users do not know who could end up buying users’ genetic information, or if a purchaser could use the information for nefarious purposes. 

For example, she said, could health information contained in her or her husband’s genetic data be used by an insurance company to increase their coverage costs? Ms Miller said she is also concerned that the company will only sell to whoever pays the most. 

Federal law prohibits companies from using genetic information for health insurance or employment, said Dr Abe Schwab, a philosophy professor at Purdue University Fort Wayne, who has studied genomic privacy in the United States. The same restriction, however, does not apply to other types of insurance, such as life insurance or long-term disability insurance, Dr Schwab said.

23andMe has said the Chapter 11 reorganisation does not change how it stores or protects personal data, and that any buyer will be required to comply with applicable laws with regard to the treatment of such information.

The proposed auction, currently scheduled for May, sheds light on an aspect of corporate bankruptcies that receives relatively little notice: Customer data is a valuable asset that often changes hands when a hospital, nursing home, pharmacy or retailer undergoes the process. 

The Justice Department said in 2024 that although the development of health technology and pharmaceuticals is heavily regulated, the sale of genomic data “appears common and is currently virtually unregulated”.

23andMe’s bankruptcy will likely provide more oversight.

Any auction will be overseen by a federal judge and be monitored by the Justice Department and state attorneys-general, some of whom have issued consumer alerts instructing 23andMe users how to delete their data.

Regulators could also seek the appointment of a consumer privacy ombudsman to provide additional independent oversight of customers’ privacy interests in Chapter 11. BLOOMBERG