23andMe’s DNA Data is Up for Sale: What Does That Mean for Your Genetic Information?

On March 23, 23andMe, the pioneer in at-home genetic testing, shocked the public by filing for Chapter 11 bankruptcy, signaling a potential sale of the company. With 15 million customers relying on the service, many are now left wondering: What happens to my genetic data?

As privacy advocates raise alarms, and even two state attorneys general urge Americans to delete their data, 23andMe insists that its bankruptcy proceedings will not affect how it handles user information. But with the company’s future uncertain, experts believe there’s a huge incentive for corporations and researchers to get their hands on the treasure trove of genetic data 23andMe has accumulated.

Genetic data provides more than just information about your ancestry—it can reveal a lot about your health, food preferences, and even traits passed down through generations. Despite growing privacy concerns, this data holds incredible potential for industries ranging from medical research to advertising.

“Genetic data is permanent and unique,” says Katie Hasson, associate director for the Center for Genetics and Society. “It could reveal information about people who don’t even exist yet, many years from now.”

As 23andMe seeks a buyer, one thing is clear: corporations, advertisers, and medical researchers are eager to access the wealth of information embedded in these DNA profiles.

The value of genetic data goes far beyond simple ancestry reports. Take, for example, how genetics can influence food preferences. Researchers have discovered hundreds of genetic variants tied to specific tastes, such as liking or disliking certain foods. Gideon Nave, an associate professor at the University of Pennsylvania’s Wharton School, explains that genetic data could be more insightful than your shopping cart—especially since the items you buy may be for someone else.

“Genetic data can often tell us more about a person’s preferences than even their stated choices,” Nave says. “It’s a much deeper level of personalization for companies, especially when it comes to targeted advertising.”

Moreover, 23andMe’s health-related services offer subscribers insights into their genetic predispositions for certain diseases, like Type 2 diabetes or celiac disease. That’s where the real value lies for healthcare companies and researchers: using genetic data to better understand diseases, create personalized treatments, and improve diagnoses.

Healthcare professionals often rely on rules of thumb, tests, and symptom-checking to diagnose patients, but many conditions share similar symptoms. This is where combining genetic data with clinical information can make a difference, says Vasant Dhar, a professor of business and data science at NYU’s Stern School of Business.

“Doctors are following rules and doing tests, but a lot of diseases have similar symptoms,” Dhar explains. “Genetic data, combined with clinical information, could lead to more accurate diagnoses and better treatments.”

Healthcare research is poised to benefit greatly from genetic information, especially when it comes to developing tailored medical interventions. However, the potential for misuse also raises significant concerns.

While genetic data is highly valuable for research and healthcare, it also brings significant privacy risks. The Genetic Information Nondiscrimination Act (GINA) prohibits the use of genetic data in health insurance and employment decisions, but there are few regulations surrounding its use in other industries, like disability insurance.

Katie Hasson warns that genetic data could be exploited in ways that people aren’t even aware of. For example, genetic traits linked to health risks might be used for targeted advertising, potentially manipulating consumers based on information they don’t fully understand about themselves.

“There’s a darker side to this,” says Dhar. “With genetics, companies could know a lot more about you than you realize. That kind of personal information could be exploited in ways that aren’t fully transparent.”

23andMe’s potential sale wouldn’t be the first time a genetic testing company has been acquired. In 2020, private equity firm Blackstone acquired Ancestry.com. But there’s a key difference: genetic data doesn’t expire. Unlike traditional consumer data, genetic information can be useful for companies long into the future, even if it’s not immediately applied.

For instance, companies could use genetic data to shape future marketing strategies, develop new products, or even predict consumer behavior based on health traits.

However, as Nave points out, this also brings risks. “One of the dangers of genetic data is that it’s permanent. It doesn’t have an expiration date,” he says. “If companies ever use it for marketing, they could target consumers based on health traits they aren’t even aware of.”

As 23andMe enters this uncertain chapter, the future of its data—and its millions of users—remains in the balance. The company promises to continue selling its DNA test kits and offering subscriptions, but who will buy the company and what they will do with the data remains to be seen.

For now, the key takeaway is clear: genetic data is incredibly powerful, and it’s more than just a tool for tracing your family tree. It’s a valuable commodity with vast potential—and the companies that acquire it could hold your most personal information for years to come.

As the world of genetic data continues to evolve, privacy concerns are sure to rise. Whether consumers will have a say in how their information is used remains to be seen, but one thing is certain: the sale of 23andMe’s data will open up a whole new world of possibilities—and risks.