California’s Attorney General urges 15 million 23andMe users to delete their genetic data immediately as the company files for bankruptcy, raising serious concerns about what could happen to Americans’ DNA information in the wrong hands.
Key Takeaways
- California Attorney General Rob Bonta issued a consumer alert advising 23andMe customers to delete their genetic data amid the company’s bankruptcy filing.
- 23andMe’s stock value has collapsed from over $320 in 2021 to less than $2 today, with the company filing for Chapter 11 bankruptcy protection.
- The company experienced a major data breach last year affecting 6.9 million customers, further damaging consumer trust.
- California’s Genetic Information Privacy Act enables consumers to request deletion of their genetic data, which Bonta strongly recommends exercising.
- Despite bankruptcy proceedings, 23andMe claims there are “no changes” to how customer data is stored or protected.
Financial Collapse and Bankruptcy Filing
Once valued at $6 billion and a pioneer in consumer genetic testing, 23andMe has officially filed for Chapter 11 bankruptcy protection. The company’s financial decline has been steep and dramatic, with its share price plummeting from over $320 in February 2021 to less than $2 today. This collapse follows several business missteps, including an unsuccessful expansion into drug development that the company has since abandoned, and a workforce reduction of 40% announced last November.
The bankruptcy filing reveals 23andMe listed assets and liabilities between $100 million and $500 million. While the company has secured a $35 million debtor-in-possession financing commitment to continue operations during bankruptcy proceedings, these developments have raised serious concerns about the massive database of genetic information the company has collected from more than 15 million customers since its founding.
23 and Me is going bankrupt. Better delete your data if you used the service. https://t.co/N6yB0Sl3Zb
— Andrew G. Huff, PhD, MS 🇺🇸 (@AGHuff) March 24, 2025
Consumer Alert from California Attorney General
California Attorney General Rob Bonta issued a formal warning to consumers about the risks associated with 23andMe’s financial instability. Bonta’s statement emphasizes the “trove of sensitive consumer data 23andMe has amassed” and the potential vulnerability of this information during bankruptcy proceedings. The company’s privacy policy allows for the transfer of personal information if the company is sold, creating uncertainty about what might happen to consumers’ genetic data.
“Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company,” Bonta said in a statement Friday.
Bonta’s warning is particularly significant given that the genetic data held by 23andMe not only affects its direct customers but also potentially reveals information about their biological relatives. This exponentially increases the number of individuals whose genetic privacy might be compromised in the event of mishandling or unauthorized access to the company’s databases.
Data Security Concerns Amplified by Recent Breach
The Attorney General’s concerns come in the wake of a significant data breach at 23andMe last year that affected approximately 6.9 million users. The company recently settled a lawsuit related to this breach for $30 million, further straining its finances. This security incident severely damaged consumer confidence in the company’s ability to safeguard sensitive genetic information that could reveal details about health predispositions and ancestry.
While 23andMe maintains that there are “no changes to how customer data is stored, managed, or protected” during bankruptcy proceedings, privacy advocates remain concerned. The combination of financial instability, leadership changes (including the resignation of co-founder and CEO Anne Wojcicki), and past security failures has created a perfect storm of privacy concerns for consumers who have entrusted their most personal biological information to the company.
How to Delete Your Data
California residents benefit from robust privacy protections under both the California Genetic Information Privacy Act and the California Consumer Protection Act. These laws require companies to obtain explicit consent for the collection and use of genetic data and allow consumers to delete their data at any time. The Attorney General has provided specific instructions for consumers wishing to remove their information from 23andMe’s systems.
Users will need to select “view” to access the “delete data” section, where the option to “permanently delete data” will appear. The process requires email verification to complete. For customers concerned about the fate of their genetic information in the hands of a financially troubled company, following these steps provides a concrete way to protect their privacy during this uncertain period.
