Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection, and its CEO has resigned. It is seeking to sell “substantially all of its assets” through a reorganization plan that will have to be approved by a federal bankruptcy judge.

Mark Jensen, Chair and member of the Special Committee of the Board of Directors stated: “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.” The company has also stated that the buyer must comply with applicable law in using the data.

That said, privacy professionals are concerned about the sale of the data in 23andMe’s possession, including the sensitive genetic information of over 15 million people. People often assume that the information is protected by HIPAA or the Genetic Information Nondiscrimination Act, but as my students know, neither applies to genetic information collected and used by a private company. State laws may apply, and consumers could be offered the ability to request the deletion of their data.

The company has said that customers can delete their data and terminate their accounts. The California Attorney General “urgently” suggests that consumers request the deletion of their data and destruction of the genetic materials in its possession and offers a step-by-step guide on how to do so.

Apparently, so many people have followed the suggestion that the 23andMe website crashed. The site is now back up and running, so 23andMe customers may wish to log in and request the deletion of their data and termination of their accounts.