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Congress is raising serious concerns over the bankruptcy filing of 23andMe, a popular consumer genetics company.
Lawmakers are demanding answers about how the sensitive genetic data of over 15 million users will be handled as the company undergoes financial restructuring.
With previous data breaches and vague privacy policies, officials are now investigating whether Americans’ DNA information could be compromised or sold off during the bankruptcy process.
Why Congress Is Investigating 23andMe
23andMe filed for Chapter 11 bankruptcy in early 2025 after struggling with revenue decline, reduced consumer demand, and the aftermath of a major 2023 data breach.
The company is known for offering DNA testing kits that provide ancestry insights and health risk reports based on genetic data.
This means 23andMe holds vast amounts of personal, sensitive data, which is now at the center of congressional concern.
Two major congressional committees — the House Committee on Oversight and the House Energy and Commerce Committee — are leading investigations into how the company intends to protect this information.
Lawmakers Demand Transparency and Accountability
The House Oversight Committee has requested that 23andMe co-founder Anne Wojcicki testify before Congress.
Lawmakers want details about how the company will manage its user data during and after bankruptcy.
They’ve also demanded internal documents showing how 23andMe handles and shares genetic information with third parties.
In a separate move, the Energy and Commerce Committee sent a letter to interim CEO Joe Selsavage, asking how the company plans to prevent unauthorized transfers or sales of genetic data.
The committee expects a response by May 1, 2025.
Growing Concerns About Genetic Data Privacy
The core issue is whether genetic data collected by 23andMe could be accessed, sold, or transferred during bankruptcy.
Privacy advocates and lawmakers fear that without strict oversight, this information might fall into the hands of foreign entities, data brokers, or other unauthorized parties.
Back in 2023, hackers accessed the personal profiles of almost 7 million users, exposing how vulnerable genetic data can be.
Additionally, 23andMe has signed multiple partnerships with pharmaceutical companies, raising questions about data-sharing practices that may not have been fully disclosed to customers.
What 23andMe Says About Customer Privacy
In its public statements, 23andMe insists that user privacy remains a top priority.
The company claims its privacy protections will remain intact despite bankruptcy.
However, the company’s own privacy policy includes a clause that allows for the transfer or sale of personal data as part of business transactions — including bankruptcy.
This has triggered even more concern, especially since the fine print may not have been clearly understood by users when they submitted their DNA samples.
The Push for Stricter Genetic Data Laws
23andMe’s case is now seen as a wake-up call for lawmakers.
The U.S. currently lacks a comprehensive federal law that specifically protects genetic data.
This regulatory gap has left consumers vulnerable, especially in bankruptcy or merger scenarios.
As a result, several members of Congress are now pushing for stronger legislation to regulate how companies collect, store, and share genetic data.
They want to ensure that no American’s DNA can be used or sold without clear, informed consent.
What Happens Next?
The outcome of the congressional investigations could shape the future of data privacy in the biotech industry.
If lawmakers find that 23andMe mishandled data or failed to properly disclose its privacy terms, it could lead to new rules or penalties.
It might also force similar companies to strengthen their user protections or face legal consequences.
Meanwhile, consumers are being urged to review their privacy settings and stay informed about how their data is being used — especially if they’ve submitted DNA to companies like 23andMe.
Final Thoughts
The bankruptcy of 23andMe has ignited a national conversation about genetic privacy, business ethics, and consumer rights.
As Congress ramps up its investigations, the spotlight is now on how much control people really have over their most personal information — their DNA.
What happens in the coming weeks could change the future of genetic testing and data protection for years to come.
