Santa Monica-based CRI Genetics, LLC (CRI) will pay a $700,000 civil penalty and will be barred from a wide range of deceptive practices to settle charges from the Federal Trade Commission and the California Attorney General that the company deceived users about the accuracy of its DNA reports.
In a joint complaint filed in federal district, the agencies say that in marketing its DNA-based ancestry and information reports, CRI deceived consumers about the accuracy of its test reports compared with those of other DNA testing companies, falsely claimed to have patented an algorithm for its genetic matching process and used fake reviews and testimonials on its websites.
According to court documents, CRI engaged in deceptive marketing tactics by creating websites that resembled independent platforms offering unbiased reviews of DNA ancestry testing companies. Failing to disclose ownership, the company posted fake consumer reviews and utilized a false scarcity message about test kit availability. Consumers were pressured into immediate purchases through misleading pop-up pages labeled as “special rewards.” The defendant misrepresented these pop-ups as transaction steps, claiming orders were incomplete and allowing review before charging. However, consumers were charged immediately, leading many to seek refunds. These manipulative practices, described as “dark patterns,” deceived consumers about product quality and popularity, compelling them to make unplanned purchases.
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