Signaling at 23 Headquarters in Sunnyvale, California, USA, on Wednesday, January 27, 2021.
David Paul Morris | Bloomberg | Getty images
The Energy and Commerce Committee of the House of Representatives is investigating the 23Andme's decision to request the bankruptcy protection of Chapter 11 and has expressed concern that its delicate genetic data “at risk of committing”, has learned CNBC.
The representative Brett Guthrie, R-Ky., Rep. Gust Bilirakis, R-Fla., And the representative Gary Palmer, R.-lad., Sent a letter to the interim CEO of 23Andme, Joe Selsavage, requesting answers to a series of questions about their data and privacy practices before May 1.
Congressmen are the latest government officials who raise concerns about 23Andme's commitment to data security, since the Government Supervision and Reform Committee and the Federal Commission of Commerce have sent similar letters to the company in recent weeks.
23Andme exploded in the main current with their DNA test kits in the home that gave customers an idea of their family stories and genetic profiles. The company was once valued at a peak of $ 6 billion, but since then it has had problems generating recurrent income and establishing a lucrative research and therapeutic businesses.
After declaring themselves in bankruptcy in the Federal Court of Missouri in March, 23Andme assets, including their vast genetic database, are for sale.
“With the lack of a Federal Law on the Security and Privacy of Comprehensive Data, we write to express our great concern for the safety of the most sensitive personal information of the Americans,” Guthrie, Bilirakis and Palmer wrote in the Charter.
23Andme did not respond immediately to the request for comments from CNBC.
23Andme has been flooded with privacy problems in recent years after computer pirates accessed the information of almost 7 million customers in 2023.
DNA data is particularly sensitive because the sequence of each person is unique, which means that it can never be completely anonymized, according to the National Institute for Human Genome Research. If genetic data falls into the hands of bad actors, it could be used to facilitate identity theft, insurance fraud and other crimes.
The Energy and Commerce Committee of the House of Representatives has jurisdiction on issues involving data privacy. Guthrie serves as president of the Committee, Palmer serves as president of the Subcommittee of Supervision and Investigations, and Bilirakis serves as president of the Subcommittee on Commerce, Manufacturing and Commerce.
Congressmen said that while the health information of Americans is protected by legislation such as the Portability and Responsibility Law of Health Insurance, or Hipa, direct companies to consumers such as 23 Andme are not usually covered by that law. They said they feel “great concern” for the security of the company's clients' data, especially given the uncertainty about the sales process.
23Andme has repeatedly said that it will not change how consumer data administers or protects throughout the transaction. Similarly, in a March statement, the company said that all potential buyers must accept complying with their privacy policy and applicable law.
“To constitute a qualified offer, potential buyers must, among other requirements, accept to comply with the 23Andme consumer privacy policy and all applicable laws regarding the processing of customer data,” said 23nd me in the statement.
23Andme customers can still delete their account and accompany data through the company's website. But Guthrie, Bilirakis and Palmer said there are reports that some users have had problems doing so.
“Regardless of whether the company changes property, we want to ensure that 23As honor the requests for access and elimination of the client,” the congressmen wrote.
LOOK: The promotion and fall of 23Andme
