California-based CRI Genetics, LLC (CRI) has agreed to pay a $700,000 civil penalty and halt a range of deceptive practices as part of a settlement with the Federal Trade Commission (FTC) and the California Attorney General. The company allegedly misled consumers about the accuracy of its DNA reports.
The joint complaint, filed in federal district, accuses CRI of deceiving consumers about the precision of its DNA-based ancestry and information reports compared to other DNA testing companies. It also alleges that CRI falsely claimed to have patented an algorithm for genetic matching, used fake reviews and testimonials on its websites, and employed “dark patterns” in its online billing process to mislead consumers.
The company, also known under the name OmniPGX, has marketed and sold DNA saliva swab test kits and associated reports since 2017. These reports offer consumers information about their genetic lineage, potential health and wellness traits and conditions, and paternity.
The complaint alleges that CRI violated the FTC Act, California’s Unfair Competition Law, Business and Professions Code, and the False Advertising Law. According to the agencies, CRI falsely claimed on its websites and social media that its ancestry reports were more precise and detailed than those of other major DNA testing companies.
Furthermore, it is alleged that CRI misrepresented that its ancestry testing reports could provide consumers with exact locations and timelines of their ancestors dating back over fifty generations with over a 90% accuracy rate.
Additionally, the complaint states that CRI posted fake reviews from supposedly “satisfied customers” on its websites and falsely claimed a limited supply of tests to induce swift purchases. The company also published star rating reviews comparing CRI’s reports to other companies on what appeared to be independent websites, without disclosing that CRI owned these sites.
In addition to the $700,000 penalty, the order will prohibit CRI from making the alleged misrepresentations and bars it from deceptive practices in connection with advertising or selling any DNA information testing product or service. The company will also be required to disclose any material connections with social media or other endorsers.
The order will further prevent CRI from misleading consumers about when orders are final or complete, when charges will occur, and whether consumers can modify their chosen services before being charged. CRI will also be required to disclose the total cost of all products or services to consumers.
Lastly, CRI must obtain consumers’ consent and explain how it may share their DNA information. The company will also be required to delete the genetic and other personal information of consumers who previously received refunds and requested that their data be deleted.
The Commission unanimously voted to authorize the staff to file the complaint and stipulated final order. Subsequently, the FTC filed the complaint and proposed final order in the U.S. District Court for the Central District of California. Nadine Samter, an attorney from the FTC’s Northwest Region, led this matter.
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