On Wednesday, January 27, 2021, Sunvel, California, Signage at 23andme headquarters in US.
David Paul Morris | Bloomberg | Getty images
The CNBC has learned that the House Committee on Energy Committee on Energy & Commerce has investigated the decision to file a 23ands of bankruptcy and expressed concern that it is in danger of its sensitive genetic data “compromise,” CNBC has learned.
Rape. Brett Guthari, R-K., Rape. Gus Bilirkis, R-Fla., And rape. Gary Palmer, R-Ella., On Thursday sent a letter to the 23andme interim CEO who was requested to answer questions about their data and privacy practices by May 1.
Congressmen are the latest government officials, who raise concerns about 23andme’s commitment to data security, as the House Committee on Oversight and Government Reforms and Federal Trade Commission have sent similar letters to the company in recent weeks.
23andme exploded the mainstream with his home’s DNA test kit, which provided customers insight into their family history and genetic profiles. The company was once considered valuable at a peak of $ 6 billion, but has been struggling to generate recurring revenue and establish an attractive research and medical business.
After filing for bankruptcy in Missouri Federal Court in March, the property of 23andme, including its vast genetic database, is ready for sale.
“With a federal comprehensive data privacy and lack of security law, we write to express our great concerns about the safety of the most sensitive personal information of Americans,” Guthar, Bilirakis and Palmer wrote in the letter.
23andme did not immediately respond to the CNBC’s request for comments.
In recent years, 23andme has been associated with privacy concerns in recent years after reaching information of about 7 million customers in 2023.
DNA data is particularly sensitive because each person’s sequence is unique, which means that it can never be completely anonymous, according to the National Human Genome Research Institute. If genetic data comes in the hands of bad actors, it can be used to make identity theft, insurance fraud and other crimes facilitated.
The House Committee on Energy and Commerce has jurisdiction on issues related to data confidentiality. The Guthari serves as the chairman of the committee, as the chairman of the sub -committee on Palmer Overseide and Investigations and Bilirakis serves as the chairman of the subcommittee on commerce, manufacturing and business.
Congressmen said that while the health information of Americans is protected under the Health Insurance Portability and Accountability Act, or HIPAA, direct-to-consumer companies such as 23andme are usually not covered under that law. He said that they feel “very worrying” about the safety of customer data of the company, especially given uncertainty around the sales process.
23andme repeatedly said that it will not change how it manages or protects consumer data throughout the transaction. Similarly, in a March release, the company said that all potential buyers should agree to follow their privacy policy and applicable law.
“To form a qualified bid, potential buyers, with other requirements, should agree to follow all the applied laws regarding the treatment of consumer privacy policy and customer data.”
23andme customers can still remove their account and do with data through the company’s website. But Guthri, Bilirakis and Palmer said that there are reports that some users have had trouble doing so.
Congressmen wrote, “Even if the company changes ownership, we want to ensure that customer access and deletion requests are being honored by 23andme.”
Watch: The rise and fall of 23andme
