Biotech Firm Faces $200K Fine for Misleading Claims on Genetic Testing
San Diego-based biotechnology company, Biora Therapeutics Inc. (formerly Progenity Inc.), has agreed to pay a substantial $200,000 settlement to resolve allegations of misleading claims regarding the cost of its genetic testing services. The settlement, announced by the California Attorney General‘s Office, requires the firm to pay penalties, eliminate all outstanding debts owed by California consumers for the genetic testing services, and provide notice to affected individuals.
Biora Therapeutics Inc. came under scrutiny for advertising and marketing its testing services with false and misleading claims about the costs, violating California’s Unfair Competition Law and False Advertising Law. The company offered tests aimed at identifying elevated risks of various diseases that could potentially be passed from parent to child.
In a ruling by Sacramento County Superior Court, Biora Therapeutics Inc. will waive the debts of all Californian consumers, totaling 465 individuals who owed over $575,000 including interest and late fees. Additionally, the company is now prohibited from accepting further payments from any California resident who previously paid for its services. Furthermore, Biora is prevented from sharing consumers’ information with credit reporting agencies or collection services.
Attorney General Rob Bonta emphasized the importance of companies accurately conveying information about their products’ costs. He stated, Today’s settlement holds Biora to account for its deceptive advertising and shields its customers from financial harm.
As part of the settlement, the company has decided to close down its genetics lab and pivot towards drug research and development. This move comes in the wake of the legal repercussions faced by Biora Therapeutics Inc., highlighting the significant impact and consequences of misleading claims in the biotechnology industry.
This settlement serves as a reminder that companies must ensure the accuracy and transparency of their product claims. By holding Biora Therapeutics Inc. accountable, the California Attorney General’s Office aims to protect consumers from deceptive practices and financial hardships.