Genetic Testing Company Presented False Reviews, FTC Alleges

SANTA MONICA, CA — Santa Monica-based genetics testing company CRI Genetics was ordered to pay $700,000 in civil penalties for misleading customers, presenting false testimonials and using deceptive billing practices, according to the California Attorney General.

Last week, the Federal Trade Commission and Attorney General Rob Bonta announced a settlement with CRI, a company that offers DNA testing and ancestry services. The settlement required the company to provide greater privacy protections to its customers.

"CRI Genetics could have found legitimate ways to market its services. Unfortunately, in its pursuit of growth and profits, the company repeatedly misled consumers. The FTC and my office took notice, we investigated, and we are delivering results today," said Attorney General Rob Bonta. "Our settlement not only holds CRI Genetics accountable for its past misconduct — it also aims to ensure that CRI Genetics doesn’t engage in similar misconduct going forward."

According to the complaint, CRI engaged in a number of misleading marketing practices including misrepresenting its DNA testing services as more accurate than competitors and told customers it could show exactly where their ancestors were from with over 90 percent accuracy.

Additionally, the complaint alleged that CRI created a testing review website "deceptively formatted to look independent." On the website, CRI posted false consumer testimonials and inflated reviews of its genetic testing services, according to the complaint.

The complaint also alleges CRI manipulated consumers into buying unwanted add-on services, which forced customers to go through, "a time-consuming and confusing refund process."

"Today’s action continues the FTC’s crackdown on deceptive reviews, dark patterns, and baseless claims around algorithmic solutions," said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. "We are proud to partner with California on this important matter and will continue to carefully scrutinize claims around biometric information technologies."

The terms of the settlement require CRI to not make any misrepresentations about its services and not employ deceptive tactics to sell testing, represent endorsements or in billing practices.