The company offers direct-to-consumer genetic testing kits, allowing customers to submit a saliva sample for DNA analysis. These tests provide insights into:
- Ancestry and family heritage
- Inherited traits
- Potential health risks
However, interest in genetic testing kits has declined, contributing to the company’s financial struggles.
Mark Jensen of 23andMe emphasized the company’s commitment to user privacy despite its challenges, “We are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction.”
HIPAA Privacy Concerns
One major issue surrounding 23andMe’s business model is that it is not subject to HIPAA regulations.
The Health Insurance Portability and Accountability Act (HIPAA) protects private health information when handled by hospitals, doctors, and health insurance companies. However, because 23andMe operates outside of the healthcare system, customers are treated as consumers rather than patients.
