No, they aren't allowed to do genetic testing for actual genetic diseases, like the mutation in this gene causes Huntington's Disease or something. They are allowed to comment on vague things like genetic modifiers of common diseases (like, people with this change have a relative risk of heart disease is 2.5% higher than the population).

They also don't have the capability to do that genetic testing for actual diseases safely or accurately. Or else they would have no problems complying with fda regulations that are in place for medical tests for good reason. There's tons of companies that do genetic testing, even whole exome and whole genome, it's easier than ever to get genetic testing done relatively cheaply. Those companies also have to do things like provide access to genetic counselors and followup family testing. 23andme doesn't want to do any of this stuff, they just wanted to charge you cash directly and plop a bunch of information directly in front of someone that's tough even for doctors and genetic counselors to interpret, and all the many many problems that would have led to.