Many people affected by adoption and family separation use direct-to-consumer DNA testing companies as part of their search. 23andMe, one of the first direct-to-consumer DNA testing companies, filed for bankruptcy in the United States on Sunday 23 March 2025.
Founded in 2006, it has sold approximately 15 million DNA testing kits worldwide. For people who may have used this service as part of their search for family, this news might have left you with some questions.
What does this development mean for its millions of customers?
- Firstly, it should be noted that bankruptcy proceedings in the US are meant to help a business restructure so that they can keep trading.
- In their Open Letter to 23andMe customers, they make a point of stating that they are looking for partners who share a commitment to customer’s privacy.
- 23andMe are continuing to trade through the bankruptcy process. This means that clients’ access to their own data is unchanged; you can still order tests, and the tests will be processed as usual.
- Clients are still able to change their settings, and to delete their data and close their 23andMe account.
Customers should be aware of the following:
Their Privacy Statement makes clear that:
“If we are involved in a bankruptcy, merger, acquisition, reorganisation, or sale of assets, your Personal Information may be accessed, sold or transferred as part of that transaction and this Privacy Statement will apply to your Personal Information as transferred to the new entity. We may also disclose Personal Information about you to our corporate affiliates to help operate our services and our affiliates’ services.”
If you are a 23andMe customer, here are some things you can do now:
- Read their Terms of Service
- Read their Privacy Statement. You should be aware that 23andMe is a US based company and therefore operate within the confines of US law. International consumers may have different rights and entitlements.
- Update your settings to reflect your preferred level of privacy and participation in research projects.
- If you have been using 23andMe to help you with your family history or to help identify a natural parent or close family member, you should take screen shots of all relevant information – such as your DNA matches and any communications you’ve had through their message section.
- Download your Personal Information and save them in a secure manner
- Protect your account password and authentication information
Personal diversification plan
- For those who want to make sure their DNA data is accessible, some genealogists recommend that you test your DNA with multiple companies
Delete your Account:
After due consideration, you may decide that you would prefer to delete your DNA data and 23andMe account. According to their Privacy statement, upon account deletion, they will automatically opt you out of any Research and discard your DNA sample.
However, please note that according to the privacy polity, “23andMe and/or our contracted genotyping laboratory will retain your Genetic Information, date of birth, and sex as required for compliance with applicable legal obligations…even if you…delete your account.”
Where to delete your 23andMe account: https://customercare.23andme.com/hc/en-us/articles/212170688-Requesting-23andMe-Account-Closure
Considerations for people using direct-to-consumer DNA testing
Regardless or whether you are a 23andMe customer, you may find the following tips useful when using direct-to-consumer DNA testing sites.
- Make sure you have read and understood the terms and conditions of the services you have signed up to and understand how your data will be used. Many of these services are governed by overseas laws which may not have the same protections available under Australian law.
- Once you have completed your search, consider deleting your profile and data.
- Ensure you have switched on Multi-Factor Authentication for the sites you are using
- Do not use the same username, email and/or password for genealogy websites as you do for other websites and accounts
- Periodically change your passwords across your accounts or use a password manager.
- Sources
23andMe Press Release: https://investors.23andme.com/news-releases/news-release-details/23andme-initiates-voluntary-chapter-11-process-maximize/
23andMe Restructuring website: https://restructuring.ra.kroll.com/23andMe/
ABC News: https://www.abc.net.au/news/2025-03-25/23andme-files-bankruptcy-genetic-testing-home-kits/105091002
PC Magazine: https://au.pcmag.com/dna-testing-kits/110232/23andme-files-for-bankruptcy-what-will-happen-to-your-dna-data
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