The monetary struggles of genetic testing and ancestry firm 23andMe are elevating questions concerning the safety of consumers’ DNA and different information.
The corporate introduced Monday that it could lay off round 40% of its workforce — about 200 workers — and shut its drug growth arm in an try to chop prices.
On Tuesday, 23andMe launched its newest earnings report, displaying income dipped 12% within the final quarter and share costs fell.
The corporate has confronted extra struggles over the previous a number of months, together with the resignations in September of the seven impartial administrators of the board.
Since its founding in 2006, 23andMe has offered greater than 12 million of its DNA kits, which use a saliva pattern to extract DNA that’s then analyzed, in keeping with the corporate’s web site.
On this photograph illustration, a 23andMe emblem seen displayed on a smartphone and within the background.
Avishek Das/SOPA Pictures/LightRocket by way of Getty Pictures
Listed below are 4 questions answered about 23andMe and customers’ information.
1. What has 23andMe mentioned about clients’ genetic information amid its struggles?
A 23andMe spokesperson instructed ABC Information the corporate had no additional remark when requested Wednesday how the corporate’s enterprise turmoil might impression clients’ private information.
The corporate states on its web site that it doesn’t promote or share buyer’s private data to 3rd events with out the shopper’s consent, that it doesn’t voluntarily share information with legislation enforcement, and that it offers an opt-in choice for patrons who wish to take part in analysis.
2. Is the genetic information collected by 23andMe protected in the identical manner as well being data?
No. 23andMe is taken into account a direct-to-consumer genetic testing firm, and transactions with the corporate are thought-about industrial, not medical.
As a result of 23andMe just isn’t a medical firm, clients’ private data just isn’t protected beneath the HIPAA Privateness Rule, which affords privateness protections to well being data.
3. Has 23andMe had information breaches earlier than?
In 2023, the corporate skilled a large safety breach that uncovered the info of practically 7 million customers.
23andMe mentioned on the time that buyer profile data shared by the corporate’s DNA Family members function had been accessed with out authorization.
The corporate agreed in October to pay a $30 million money settlement in a class-action lawsuit stemming from the info breach, in keeping with The Related Press.
Following the breach, the corporate additionally mentioned it required each buyer to reset their password and commenced requiring all clients to make use of two-step verification for login.
4. Is there something shoppers can do?
As a normal rule, shoppers who’ve shared their DNA with any direct-to-consumer genetic testing firm ought to take note of the corporate over time, as corporations have the proper to alter their privateness insurance policies and enterprise practices.
Firms, 23andMe included, even have a accountability to inform shoppers of modifications and get “shoppers’ affirmative specific consent for any new makes use of of their information,” in keeping with the Federal Commerce Fee, the federal government company that conducts oversight of direct-to-consumer genetic testing corporations.
