Penalty Amount
$700,000
CRI Genetics, LLC was charged by the FTC and California Attorney General for deceptive marketing of DNA testing services, including false accuracy claims, fake reviews, and using dark patterns in billing. The company agreed to a settlement, paying a $700,000 civil penalty, and is prohibited from deceptive practices, must obtain consent for data sharing, and allow data deletion for consumers who requested it.
CRI Genetics must pay a $700,000 civil penalty, cease all deceptive marketing practices, disclose total costs and charging practices, obtain explicit consent before sharing DNA information, and delete genetic data for consumers who received refunds and requested deletion.
In-house legal teams should review customer-facing agreements (terms of service, billing authorizations, and marketing materials) and vendor/data processor agreements. Key clauses to scrutinize include: 1) representations and warranties regarding product/service accuracy and performance claims; 2) provisions governing the use and authenticity of reviews, testimonials, and endorsements; 3) billing and payment terms, especially those involving automatic renewals, negative option marketing, or 'dark pattern' design elements that could mislead consumers; 4) data processing and sharing clauses, ensuring explicit, granular consent is obtained for sharing biometric/genetic data; and 5) consumer rights sections, guaranteeing a clear, accessible mechanism for data deletion requests. Agreements may need amendments to remove unsubstantiated accuracy claims, implement unambiguous consent mechanisms for data sharing, establish a compliant data deletion process, and redesign any billing interfaces or terms that employ deceptive patterns.
Entity
CRI Genetics, LLC
Also known as: CRI Genetics
Industry
HealthcareOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2023/11/ftc-california-obtain-order-against-dna-testing-firm-over-charges-it-made-myriad-misrepresentations
crigeneticscomplaint
https://www.ftc.gov/system/files/ftc_gov/pdf/crigeneticscomplaint.pdf
crigeneticsstipulatedorder
https://www.ftc.gov/system/files/ftc_gov/pdf/crigeneticsstipulatedorder.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"CRI Genetics, LLC (CRI)"
"$700,000 civil penalty"
"FTC Act"
"California’s Unfair Competition Law"
"False Advertising Law"
"used 'dark patterns' in its online billing process to trick consumers into paying for products they did not want and did not agree to buy"
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$106.8M
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