Congress Seeks Answers from 23andMe Amid Bankruptcy Proceedings

The House Committee on Energy and Commerce has launched an inquiry into 23andMe's situation following its decision to seek Chapter 11 bankruptcy protection.

Representatives Brett Guthrie, Gus M. Bilirakis, and Gary Palmer have reached out to Joe Selsavage, the interim CEO of the biotech company, with a list of concerns. Their focus is the impact this bankruptcy could have on the private data of millions of Americans.

"In the absence of a comprehensive federal law addressing data privacy and security, we are deeply concerned about safeguarding citizens' most private information," the representatives stated.

In March, 23andMe began the Chapter 11 process, following significant layoffs and the closure of its therapeutics wing the previous November. The organization has faced various challenges over the past years, notably a security breach in 2023 that compromised data from nearly 7 million users, leading to a $30 million settlement.

Recently, 23andMe disclosed specifics about the sale process under court supervision, asserting that any prospective buyers must adhere to its privacy policies and relevant laws.

A representative from 23andMe pointed to an April 18 announcement that delved into more specifics regarding the sale.

Prospective buyers are required by the company to provide comprehensive details on how they plan to use any customer data acquired. They must also clarify their privacy measures and security strategies. Additionally, any request to alter existing privacy agreements must comply with the company's established policies and legal norms.

The House Committee on Energy and Commerce expects a response from 23andMe by May 1, addressing several key queries.