The leaders of the House Committee on Energy and Commerce have launched an investigation into how 23andMe's bankruptcy filing may affect the genetic testing company's handling of customer data. In a letter sent to 23andMe's interim CEO Joe Selsavage, Representatives Brett Guthrie, Gus Bilirakis, and Gary Palmer expressed concerns over the potential sale of sensitive customer information and the lack of protections under the Health Insurance Portability and Accountability Act (HIPAA).

The lawmakers' inquiry comes on the heels of 23andMe's chapter 11 bankruptcy filing in March, which has raised questions about the company's ability to safeguard customer data. The representatives pointed out that some customers have already reported difficulties in deleting their data from the 23andMe website, further exacerbating concerns over data privacy. The letter requests information on how 23andMe plans to handle customer data in the event of a sale, as well as the company's data retention and deletion policies.

The investigation highlights the patchwork of state laws governing genetic privacy, which can leave customers vulnerable to data breaches and unauthorized access. 23andMe, which settled a data breach lawsuit for $30 million last year, is not covered by HIPAA protections, which are typically reserved for healthcare providers and health insurance companies. The lack of robust federal regulations has created a gray area for direct-to-consumer genetic testing companies like 23andMe, leaving customers to rely on company policies and state laws for data protection.

The lawmakers' concerns are not unfounded, given the sensitive nature of genetic data. The unauthorized sale or access of such data could have far-reaching consequences, including discrimination, identity theft, and exploitation. The investigation serves as a timely reminder of the need for stronger federal regulations governing genetic data privacy and security.

23andMe's bankruptcy filing has also raised questions about the company's future, with co-founder and former CEO Anne Wojcicki announcing her resignation to become a private bidder for the company. The move has sparked speculation about the potential sale of 23andMe's assets, including its vast repository of customer genetic data.

The House Committee on Energy and Commerce's investigation is a crucial step towards ensuring that customer data is protected in the event of a sale or bankruptcy. As the genetic testing industry continues to grow, it is essential that lawmakers and regulators take a proactive approach to safeguarding sensitive customer information. The outcome of this investigation will have significant implications for the industry as a whole, and may pave the way for more comprehensive federal regulations governing genetic data privacy.