23andMe Files for Chapter 11 Bankruptcy: What Customers Should Know
23andMe, a prominent player in the genetic testing industry, has recently filed for Chapter 11 bankruptcy protection in a strategic move to facilitate a potential sale of the company. This legal step aims to maximize the business’s value amidst persistent financial challenges.
Recent Developments in 23andMe
Based in California, 23andMe is largely recognized for its at-home genetic testing kits, which provide insights into ancestry and genetic traits. However, since its public debut, the company has struggled to establish a sustainable business model. Following the bankruptcy filing, Anne Wojcicki, the co-founder and CEO, announced her resignation. She indicated her intention to pursue the company as an independent bidder.
According to an official statement released on Sunday, 23andMe is committed to continuing its operations throughout the bankruptcy process. The filing took place in the U.S. Bankruptcy Court for the Eastern District of Missouri.
Financial Background
Following its public listing in 2021, 23andMe has faced significant financial hurdles. The company reported a staggering net loss of $667 million in its last fiscal year, a sharp increase from a $312 million loss the previous year. This downturn has raised questions about the longevity of its business model, especially as many customers purchase genetic testing kits just once.
Concerns Over Data Privacy
As the news of 23andMe’s financial instability spreads, customers are increasingly worried about the future of their sensitive genetic data. In light of this, California Attorney General Rob Bonta has issued a consumer alert emphasizing the rights of customers under the Genetic Information Privacy Act (GIPA) and the California Consumer Protection Act (CCPA). Customers are reminded that they have the right to request deletion of their genetic data.
23andMe’s officials have reassured customers that there will be no changes to the manner in which they store, manage, or protect customer data. Mark Jensen, Chair of the company’s Special Committee of the Board, stated that the company is dedicated to safeguarding customer data and will remain transparent throughout any potential sale process.
How to Delete Your Data from 23andMe
For those considering deleting their accounts and personal data, here is how to proceed:
- Log into your 23andMe account on their website.
- Go to the “Settings” section of your profile.
- Scroll to “23andMe Data” at the bottom of the page.
- Click “View” next to “23andMe Data.”
- Download your genetic data if desired.
- Navigate to the “Delete Data” section.
- Click “Permanently Delete Data.”
- Confirm your request via the email link sent by 23andMe.
Conclusion
As 23andMe navigates this challenging period, customers are encouraged to stay informed about the implications for their data privacy and rights. The company’s commitment to customer data safety will be pivotal in maintaining trust during this transition.
