Key Takeaway
The UK Information Commissioner’s Office (ICO) has issued provisional findings against 23andMe, proposing a fine of $5.93 million for data protection violations under UK GDPR. The company must address these findings, which are subject to affordability considerations. This regulatory action coincides with 23andMe’s Chapter 11 bankruptcy filing in the US, aimed at reorganizing debts and facilitating a sale. Despite these financial challenges, the ICO stresses that 23andMe’s obligations to protect customer data remain unchanged, and the regulator is closely monitoring the situation while maintaining compliance requirements.
“Earlier this month, we provided 23andMe with our provisional findings, a notice of intent to impose a fine of US$5.93 million, and a preliminary enforcement notice,” Stephen explained.
“We want to emphasize that these findings are provisional and, like all preliminary findings, are subject to representations from 23andMe, including regarding affordability considerations.”
If finalized, the fine would represent a significant penalty for violations related to data protection under UK GDPR (General Data Protection Regulation) – the comprehensive privacy legislation that dictates how organizations must safeguard the personal information of UK citizens.
This legislation imposes stringent requirements on companies that handle sensitive data, with genetic information categorized at the highest level of protection.
23andMe Bankruptcy Filing
This regulatory action arrives at a difficult time for 23andMe, as the company has now initiated bankruptcy proceedings in its home market.
The Chapter 11 filing, a type of bankruptcy in the US that allows a company to reorganize its debts while continuing operations, aims to facilitate a sale process, according to the ICO statement.
Despite these financial developments, the ICO has clarified that the company’s obligations to protect customer data remain unchanged.
The regulator confirmed it is monitoring the situation but stressed that bankruptcy proceedings do not modify compliance requirements.
“We are aware that 23andMe has filed for Chapter 11 bankruptcy in the US to facilitate a sale process. We are closely monitoring the situation and are in contact with the company,” Stephen stated.
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