Lawmakers raised questions and concerns about the sale of genetic-testing company 23andMe during a hearing on Tuesday.
Members of the House Committee on Oversight and Government Reform focused on privacy worries regarding the health data of more than 15 million 23andMe users as the company nears a bankruptcy sale.
"There are serious concerns about what will happen to this private information," said committee chairman Rep. James Comer. "How will it be stored? What will it be used for?"
Several lawmakers specifically highlighted concerns that information could fall into the hands of a foreign government like China.
"Our concerns are magnified by the fact that the hostile actors, including foreign adversaries, are constantly attempting to buy or steal American's sensitive data," said Rep. Stephen Lynch, the acting ranking member of the committee.
23andMe founder and former CEO Anne Wojcicki, interim CEO Joe Selsavage, and William & Mary Law School professor Margaret Hu were called as witnesses to answer questions from committee members.
Wojcicki served as CEO until she resigned in March. She's now currently bidding to independently buy the company through a recently created nonprofit she founded.
"During my time as CEO, privacy was central to every decision we made," she said during her opening statement.
Joe Selsavage is the interim CEO for 23andMe and said that it's requiring any bidder to comply with all of its privacy policies.
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Biotechnology company Regeneron Pharmaceuticals was set to buy 23andMe for $256 million, but a late bid from Wojcicki reopened the process.
At the time of its bid, Regeneron said it would "prioritize the privacy, security and ethical use of 23andMe's customer data."
But lawmakers voiced concern that no matter who the buyer is, the service's data could be exposed.
Nearly 7 million people had their genetic information exposed in a data breach in 2023.
Stolen health data can be abused in a number of ways, according to Dave Stuart, the senior director of product marketing for security platform Sentra.
"It absolutely can be used for a wide range of fraud, impersonation, and even just discrimination," Stuart told Scripps News Group Baltimore, following 23andMe filing for bankruptcy.
Attorneys general from 27 states filed a lawsuit Monday to stop the sale of personal data without customers' consent.
"23andMe cannot auction millions of people's personal genetic information without their consent," New York Attorney General James said in a statement. "New Yorkers and many others around the country trusted 23andMe with their private information and they have a right to know what will be done with their information."
Selsavage said the company's two bidders, Wojcicki and Regeneron, will present their final bids to the company by the end of this week.
It's unclear if the multi-state lawsuit could delay a final sale.
