Bankrupt 23andMe faces scrutiny by U.S. House Committee as government seeks testimony from cofounder
A U.S. House committee on Tuesday asked 23andMe’s cofounder to testify next month as it launched an investigation into the risk of genetic data being transferred to potential buyers amid the DNA testing company’s bankruptcy.
James Comer, a Republican from Kentucky and the chairman of the House Committee on Oversight and Government Reform, sent a letter to 23andMe’s Anne Wojcicki, seeking her testimony on May 6 as well as documents and information from the genomics firm.
The genomics firm filed for bankruptcy protection last month after struggling with weak demand for its ancestry testing kits.
Wojcicki made multiple failed takeover bids for the company and resigned as its CEO in March. She is still a board member of the company.
The bankruptcy filing has raised concerns about where the genetic data it collected would go. The company has said the bankruptcy process will not affect how it stores, manages, or protects customer data.
23andMe collects saliva samples to provide insights into ancestry and health risks.
There were concerns the data on 23AndMe’s more than 15 million customers, if not protected sufficiently, could be accessed by countries such as China, or used for assessing higher insurance premiums, among other purposes, Comer said.
“We need to ensure the safety of Americans’ data,” Comer said in the letter.
The company was also the target of a hack in 2023, when personal data of nearly seven million customers was exposed over five months.
The company has also made at least 30 deals with pharmaceutical companies such as GSK, giving them access to its database. Most of its agreements remain undisclosed.
23andMe said in March any buyer will be required to comply with applicable laws about how customer data is treated. (This story has been refiled to correct the day of the week from “Monday” to “Tuesday” in paragraph 1)
—Siddhi Mahatole, Reuters