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UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

FEDERAL TRADE COMMISSION, 

and THE PEOPLE OF THE STATE OF 

CALIFORNIA,

 Plaintiffs, 

vs.

CRI GENETICS, LLC, a limited 

liability company, also doing business as 

OMNIPGX, 

 Defendant.

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Case No. 2:23-CV-9824

[PROPOSED] STIPULATED ORDER 

FOR PERMANENT INJUNCTION, 

MONETARY JUDGMENT FOR CIVIL 

PENALTY, AND OTHER RELIEF

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Plaintiffs, the Federal Trade Commission (“Commission” or “FTC”) and 

The People of the State of California, by Attorney General Rob Bonta 

(“California” or “The People”), filed their Complaint for Permanent Injunctive, 

Monetary, and Other Relief (“Complaint”), for a permanent injunction, monetary 

judgment, and other relief in this matter, pursuant to Section 13(b) of the Federal 

Trade Commission Act (“FTC Act”), 15 U.S.C. §53(b), California Business & 

Professions Code, § 17200, et seq. (“the California Unfair Competition Law”), 

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and California Business & Professions Code § 17500, et seq (“the California 

False Advertising Law”). 

Plaintiffs and Defendant have agreed to entry of this Stipulated Order for 

Permanent Injunction, Monetary Judgment, and Other Relief (“Order” or 

“Judgment”) (lodged concurrently with this Stipulation) to resolve all claims 

against Defendant in this action.

THEREFORE, IT IS ORDERED as follows:

FINDINGS

1. This Court has jurisdiction over this matter.

2. The Complaint charges that Defendant participated in deceptive acts 

or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45, the 

California Unfair Competition Law, and the California False Advertising Law, in 

connection with the advertising, marketing, and sale to consumers of DNA 

Information testing for ancestry and health-related traits and conditions.

3. Defendant neither admits nor denies any of the allegations in the 

Complaint, except as specifically stated in this Order. Only for purposes of this 

action, Defendant admits the facts necessary to establish jurisdiction. 

4. Defendant waives any claim that it may have under the Equal 

Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action 

through the date of this Order, and agrees to bear its own costs and attorney fees.

5. Defendant waives all rights to appeal or otherwise challenge or 

contest the validity of this Order.

6. Oleh Mulyar, aka Alex Mulyar (“Mulyar”), Defendant’s current 

principal executive officer, consents to the jurisdiction of this Court for purposes 

of this Stipulation and Order and agrees to be bound by the terms of this 

Judgment.

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7. Defendant represents that, in accordance with its policy at the time 

that provided a no-questions-asked refund upon request, it issued approximately 

$5.9 million in refunds to over 99% of consumers that requested one from 2019 

through April 2023. Defendant further represents that Defendant did not issue 

refunds in response to 389 refund requests from 2019 through 2022 due to a lack 

of consumer information.

8. Entry of this Judgment reflects a negotiated agreement among 

Plaintiffs, Defendant, and CRI’s Principal Executive Officer. 

DEFINITIONS

For purposes of this Order, the following definitions apply:

A. “Affirmative Express Consent” means any freely given, specific, 

informed, and unambiguous indication of an individual consumer’s wishes 

demonstrating agreement by the individual, such as by a clear affirmative action, 

following a Clear and Conspicuous disclosure to the individual of: (i) the 

specific purpose(s) for which the information is being collected, used, or 

disclosed; (ii) the name of any entity who collects the information or to whom the 

information is disclosed; (iii) a simple, easily-located means for the consumer to 

withdraw consent; (iv) any limitations on the consumer’s ability to withdraw 

such consent; and (v) all other information material to the provision of consent. 

The Clear and Conspicuous disclosure must be separate from any “privacy 

policy,” “terms of service,” “terms of use,” or other similar document. The 

following does not constitute Affirmative Express Consent:

1. Inferring consent from the hovering over, muting, pausing, or 

closing of a given piece of content by the consumer; 

2. Inferring or obtaining consent from a disclosure provided at a 

hyperlink; or

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3. Obtaining consent through a user interface that has the substantial 

effect of subverting or impairing user autonomy, decision-making, or choice.

B. “Billing Information” means any data that enables any person to access a 

consumer’s account, such as a credit card, debit card, checking, savings, share or 

similar account, utility bill, or mortgage loan account. 

C. “Charge(s),” “Charged,” or “Charging” means any attempt to collect 

money or other consideration from a consumer, including, but not limited to, 

causing Billing Information to be submitted for payment, including against the 

consumer’s credit card, debit card, bank account, telephone bill, or other account. 

D. “Clear(ly) and Conspicuous(ly)” means that a required disclosure is 

difficult to miss (i.e., easily noticeable) and easily understandable by ordinary 

consumers, including in all of the following ways: 

1. In any communication that is solely visual or solely audible, the 

disclosure must be made through the same means through which the 

communication is presented. In any communication made through both visual 

and audible means, such as a television advertisement, the disclosure must be 

presented simultaneously in both the visual and audible portions of the 

communication even if the representation requiring the disclosure is made in 

only one means.

2. A visual disclosure, by its size, contrast, location, the length of time 

it appears, and other characteristics, must stand out from any accompanying 

text or other visual elements so that it is easily noticed, read, and understood.

3. An audible disclosure, including by telephone or streaming video, 

must be delivered in a volume, speed, and cadence sufficient for ordinary 

consumers to easily hear and understand it.

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4. In any communication using an interactive electronic medium, 

such as the Internet or software, the disclosure must be unavoidable.

5. The disclosure must use diction and syntax understandable to 

ordinary consumers and must appear in each language in which the 

representation that requires the disclosure appears.

6. The disclosure must comply with these requirements in each 

medium through which it is received, including all electronic devices 

and face-to-face communications.

7. The disclosure must not be contradicted or mitigated by, or 

inconsistent with, anything else in the communication.

8. When the representation or sales practice targets a specific 

audience, such as children, the elderly, or the terminally ill, “ordinary 

consumers” includes reasonable members of that group. 

E. “Close Proximity” means that the disclosure is very near the 

triggering representation. For example, a disclosure made through a 

hyperlink, pop-up, interstitial, or other similar technique is not in close 

proximity to the triggering representation. 

F. “Collateral” means the industrial/commercial property in El 

Segundo, California (Parcel ID AIN 4135018005).

G. “Covered Information” means information from or about an 

individual consumer, including: (1) a first and last name; (2) a physical 

address; (3) an email address or other online contact information, such as 

instant messaging user identifier or a screen name; (4) a telephone number; 

(5) a financial account number; (6) credit or debit card information; (7) 

DNA Information; (8) a persistent identifier, such as a customer number 

held in a “cookie,” a static Internet Protocol (“IP”) address, a mobile device 

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ID, processor serial number, user ID, or any other persistent identifier that 

can be used to recognize a user over time and/or across different devices, 

websites, or online services; or (9) any information combined with any of 

(1) through (8) above.

H. “CRI Principal Executive Officer” means Oleh Mulyar, aka Alex 

Mulyar, and refers to both his role as the principal executive officer of 

Defendant and his individual capacity where applicable. 

I. “Data Product” means any models or algorithms developed in 

whole or in part using DNA Information that Defendant collected from any 

individual consumer.

J. “Defendant” means CRI Genetics, LLC, also doing business as 

OmniPGX, and its successors and assigns.

K. “DNA Information” means biological DNA samples and/or any 

individually identifiable information derived from an individual consumer’s 

biological DNA sample, such as through genomic, molecular, and 

computational analyses (e.g., by genotyping and whole or partial genome 

sequencing). 

L. “Material Connection” means any relationship that materially 

affects the weight or credibility of any endorsement and that would not be 

reasonably expected by consumers. 

M. “Refund Policy” means Defendant’s refund policy attached hereto 

as Attachment C. 

ORDER

I. PROHIBITION AGAINST MISREPRESENTATIONS, 

INCLUDING FALSE AND/OR UNSUBSTANTIATED CLAIMS

REGARDING DNA INFORMATION TESTING PRODUCTS 

AND SERVICES AND DATA PRODUCTS

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IT IS ORDERED that Defendant, Defendant’s officers, agents, 

employees, and attorneys, and all other persons in active concert or 

participation with any of them, who receive actual notice of this Order, 

whether acting directly or indirectly, in connection with the advertising, 

promotion, offering for sale, or sale of any DNA Information testing 

product or service are permanently restrained and enjoined from:

A. Making any misrepresentation, expressly or by implication: 

1. That Defendant’s DNA Information testing product or service: 

a. is more accurate or detailed than competitors’ DNA 

Information testing products or services; 

b. will show the geographic location of a consumers’ ancestors 

with a 90 percent or higher accuracy rate;

c. will show exactly where consumers’ ancestors came from or

exactly when or where they arrived; or

2. That a patent has been obtained for any tool, software, 

algorithm, Data Product, or product or service related to DNA

Information testing. 

B. Making any representation, expressly or by implication, about the 

superiority, accuracy, efficacy, performance, or level of detail of any DNA 

Information testing product or service, unless the representation is nonmisleading, and, at the time such representation is made, Defendant 

possesses and relies upon competent and reliable scientific evidence that is 

sufficient in quality and quantity based on standards generally accepted in 

the relevant scientific fields, when considered in light of the entire body of 

relevant and scientific evidence, to substantiate that the representation is 

true. 

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II. PROHIBITION AGAINST MISREPRESENTATIONS 

CONCERNING ENDORSEMENTS 

IT IS FURTHER ORDERED that Defendant, Defendant’s officers, 

agents, employees, and attorneys, and all other persons in active concert or 

participation with any of them, who receive actual notice of this Order, 

whether acting directly or indirectly, in connection with the advertising, 

promotion, offering for sale, or sale of any product or service are 

permanently restrained and enjoined from making, or assisting others in 

making, any misrepresentation, expressly or by implication: 

A. Regarding the objectivity or impartiality of any content, including 

any endorsement, review, rating, ranking, or star ratings of any entity 

offering those products or services;

B. Regarding the influence of compensation on any content, including 

any endorsement, review, rating, ranking or star ratings of any entity 

offering those products or services;

C. Regarding any Material Connection between Defendant and any 

website, social media site, individual, or entity offering or affiliated with a 

product or service; 

D. That any endorsement of a product, service, or entity is (1) a truthful 

endorsement, or (2) by an actual or impartial user of the product, service, or 

entity; or

E. Through the use of any endorsement of a product, service, or entity.

III. REQUIRED DISCLOSURE OF MATERIAL CONNECTIONS

 

IT IS FURTHER ORDERED that Defendant, Defendant’s officers, 

agents, employees, and attorneys, and all other persons in active concert or 

participation with any of them, who receive actual notice of this Order, 

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whether acting directly or indirectly, in connection with the advertising, 

promotion, offering for sale, or sale of any product or service are 

permanently restrained and enjoined from making, or assisting others in 

making, any representation, expressly or by implication:

A. That Defendant’s content is a source of information for products and 

services, (1) without disclosing, Clearly and Conspicuously, and in Close 

Proximity to the representation, the influence of any compensation on any 

such content or any other Material Connection between Defendant and any 

individual or entity affiliated with any such product or service; or (2) unless 

the representation is not otherwise misleading; or

B. Regarding any consumer or other endorser or a product, service, or 

entity, (1) without disclosing, Clearly and Conspicuously, and in Close 

Proximity to the representation, any Material Connection between such 

endorser and Defendant or any other individual or entity offering or 

affiliated with the product or service, and (2) unless the representation is not 

otherwise misleading. 

IV. PROHIBITION AGAINST MISREPRESENTATIONS

IN WEBSITE BILLING PROCESS

IT IS FURTHER ORDERED that Defendant, Defendant’s officers, 

agents, employees, and attorneys, and all other persons in active concert or 

participation with any of them, who receive actual notice of this Order, 

whether acting directly or indirectly, in connection with the advertising, 

promotion, offering for sale, or sale of any product or service are 

permanently restrained and enjoined from making any misrepresentation,

expressly or by implication, regarding: 

A. When orders for products and services are final or complete; 

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B. When Charges occur; 

C. Consumers’ ability to confirm, edit, or delete products and services 

selected before Charges for such products and services occur; 

D. Whether any products or services are available only for a short 

period of time or in a limited quantity; 

E. Whether any products or services are special rewards or other offers 

only made available to individual consumers or a limited number of 

consumers;

F. The number or percentage of consumers that select to purchase any 

specific products or services; or

G. Whether taking any action during the billing process will 

significantly interfere with the ordering process or result in multiple 

Charges.

V. USE OF CONSUMER BILLING INFORMATION TO OBTAIN 

PAYMENT 

IT IS FURTHER ORDERED that Defendant, Defendant’s officers, 

agents, employees, and attorneys, and all other persons in active concert or 

participation with any of them, who receive actual notice of this Order, 

whether acting directly or indirectly, in connection with the advertising, 

promotion, or offering for sale, or sale of any product or service are 

permanently restrained and enjoined from using Billing Information to 

obtain payment from a consumer, until Defendant has Clearly and 

Conspicuously disclosed to the consumer the total cost the consumer will be 

Charged, the products or services for which the consumer will be Charged, 

and how the consumer can withdraw consent to that Charge before Billing 

Information is used to obtain payment. 

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VI. REQUIRED DISCLOSURES RELATING TO WEBSITE 

BILLING

IT IS FURTHER ORDERED that Defendant, Defendant’s officers, 

agents, employees, and attorneys, and all other persons in active concert or 

participation with any of them, who receive actual notice of this Order, 

whether acting directly or indirectly, in connection with the advertising, 

promotion, offering for sale, or sale of any product or service are 

permanently restrained and enjoined from making any representation, 

expressly or by implication, regarding consumers’ ability to confirm, edit, 

or delete products and services selected before Charges for such products 

and services occur, without disclosing, Clearly and Conspicuously, and in 

Close Proximity to the representation, 

A. When orders for products and services are final or complete; and

B. When Charges will occur. 

VII. NOTICE AND AFFIRMATIVE EXPRESS CONSENT

 

IT IS FURTHER ORDERED that Defendant, Defendant’s officers, 

agents, employees, and attorneys, and all other persons in active concert or 

participation with any of them, who receive actual notice of this Order, 

prior to using DNA Information collected from an individual consumer, 

must:

A. Clearly and Conspicuously disclose to the consumer from whom 

Defendant has collected DNA Information, separate and apart from any 

“privacy policy,” “terms of use” page, or other similar document, all 

purposes for which Defendant will use, and to the extent applicable, share, 

the DNA Information; and 

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B. Obtain the Affirmative Express Consent of the consumer from 

whom Defendant collected the DNA Information.

VIII. COMPLIANCE WITH CALIFORNIA LAW 

IT IS FURTHER ORDERED that Defendant, Defendant’s officers, 

agents, employees, and attorneys, CRI Principal Executive Officer and all 

other persons in active concert or participation with any of them, who 

receive actual notice of this Order, whether acting directly or indirectly, in 

connection with the advertising, promotion, offering for sale, or sale of any 

DNA Information testing product or service are permanently restrained and 

be enjoined from violating, causing others to violate, or assisting others in 

violating any provision of the following: 

A. California Business & Professions Code §17500 et seq. (California 

False Advertising Law), including by making any false or misleading 

statements; 

B. California Business & Professions Code §17200 et seq. (California 

Unfair Competition Law), including by violating the California False 

Advertising Law;

C. California Civil Code, § 1770 et seq. (California Consumers Legal 

Remedies Act), including by representing that their goods or services are of 

a particular standard, quality, or grade, when they are of another or

advertising goods or services with intent not to sell them as advertised; 

D. California Civil Code, § 56.18 et seq. (California Genetic 

Information Privacy Act), including by failing to provide notice and/or 

obtain express consent related to use and disclosure of genetic testing data; 

and

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E. California Civil Code, § 1798.100 et seq., and California Code of 

Regulations, tit. 11, § 7000 et seq. (California Consumer Privacy Act), 

including by failing to offer and/or process California consumers’ rights to 

opt-out of sale or sharing of personal information, failing to require opt-in 

for minors and/or their parents of sale or sharing of personal information, or 

failing to limit the use and disclosure of sensitive personal information. 

IX. NOTICE TO PURCHASERS

IT IS FURTHER ORDERED that within 30 days of entry of this 

Order, Defendant shall send by electronic mail an exact copy of the notice 

attached as Attachment A, showing the date of the mailing, to any 

consumer who purchased a DNA Information testing product or service

from January 2017 through May 2021. 

X. COMPLIANCE WITH REFUND POLICY 

IT IS FURTHER ORDERED that: 

A. Defendant shall post a copy of the Refund Policy on its website under 

any Frequently Asked Questions or appropriate location likely to be found 

by consumers.

B. Defendant shall issue refunds according to the Refund Policy.

C. Defendant shall issue refunds in response to refund requests it 

received from 2019 through 2022 but did not grant due to lack of consumer 

information, if it receives information sufficient to provide the refund.

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XI. MANDATED DELETION OF CERTAIN 

COVERED INFORMATION

 IT IS FURTHER ORDERED that Defendant, Defendant’s 

officers, agents, employees, and attorneys, and all other persons in active 

concert or participation with any of them, who receive actual notice of this 

Order, must:

A. Delete or destroy all Covered Information collected by Defendant 

from all consumers who purchased Defendant’s DNA Information testing 

products or services, who received a full refund of the purchase price on or 

before the date of entry of this Order, and who request such deletion or 

destruction. Defendant must notify all such consumers within 14 days of 

the date of entry of this Order by providing the notice in Attachment B and 

must delete or destroy the Covered Information within 14 days of a 

consumer’s request. Within 365 days after the date of entry of this Order, 

Defendant must submit a written statement to the Commission and 

California, sworn under penalty of perjury, confirming the deletion or 

destruction and any exceptions.

B. Delete or destroy all Covered Information collected by Defendant 

from any consumer who purchases Defendant’s DNA Information testing 

products or services who is entitled to a full refund of the purchase price 

after the date of entry of this Order, and who requests such deletion or 

destruction. Defendant must Clearly and Conspicuously disclose 

consumers’ right to delete or destroy their Covered Information, including 

the steps needed to request such deletion or destruction and obtain written 

confirmation.

Provided, however, that any Covered Information that Defendant is

otherwise required to delete or destroy pursuant to this provision may be 

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retained, and may be disclosed, as requested by a government agency or 

otherwise required by law, regulation, court order, or other legal obligation, 

including as required by rules applicable to safeguarding of evidence in 

pending litigation. In each report required by the Order, Defendant must 

describe in detail the information that Defendant excepted and the specific 

legal obligation that precludes Defendant from deleting or destroying such 

information. 

XII. ORDER ACKNOWLEDGEMENTS

IT IS FURTHER ORDERED that Defendant obtains 

acknowledgments of receipt of this Order:

Within 30 days of entry of this Order, Defendant, and separately the 

CRI Principal Executive Officer, must submit to Plaintiffs an 

acknowledgment of receipt of this Order sworn under penalty of perjury.

For 5 years after entry of this Order, Defendant, and the CRI 

Principal Executive Officer for any business that he, individually or 

collectively, is the majority owner or controls directly or indirectly, must 

deliver a copy of this Order to: (1) all principals, officers, directors, and 

LLC managers and members; (2) all employees and agents having 

managerial responsibilities for conduct related to the subject matter of the 

Order and all agents and representatives who participate in conduct related 

to the subject matter of the Order; and (3) any business entity resulting from 

any change in structure as set forth in the Section titled Compliance 

Reporting. Delivery must occur within 30 days of entry of this Order for 

current personnel. For all others, delivery must occur before they assume 

their responsibilities.

From each individual or entity to which a copy of this Order was 

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delivered, Defendant or the CRI Principal Executive Officer must obtain, 

within 30 days of delivery, a signed and dated acknowledgment of receipt 

of this Order.

XIII. COMPLIANCE REPORTING

IT IS FURTHER ORDERED that Defendant and the CRI Principal 

Executive Officer make timely submissions to the Plaintiffs: 

One year after entry of this Order, the CRI Principal Executive 

Officer must submit a compliance report, sworn under penalty of perjury, 

and separately, Defendant, must submit a compliance report, sworn under 

penalty of perjury: 

1. Defendant must: (a) identify the primary physical, postal, and 

email address and telephone number, as designated points of contact, 

which representatives of Plaintiffs may use to communicate with 

Defendant; (b) identify all businesses owned or controlled by Defendant

by all of their names, telephone numbers, and physical, postal, email, 

and Internet addresses; (c) describe the activities of each business, 

including the goods and services offered, the means of advertising, 

marketing, and sales, and the involvement, if any, of the CRI Principal 

Executive Officer (which the CRI Principal Executive Officer must 

describe if he knows or should know due to his own involvement); (d) 

describe in detail whether and how Defendant is in compliance with 

each Section of this Order; and (e) provide a copy of each Order 

Acknowledgment obtained pursuant to this Order, unless previously 

submitted to the Plaintiffs. 

2. Additionally, the CRI Principal Executive Officer must: (a) 

identify all telephone numbers and all physical, postal, email and Internet 

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addresses, including all residences; (b) identify all business activities, 

including any business for which the CRI Principal Executive Officer

performs services whether as an employee or otherwise and any entity in 

which the CRI Principal Executive Officer has any ownership interest; 

and (c) describe in detail the CRI Principal Executive Officer’s 

involvement in each such business, including title, role, responsibilities, 

participation, authority, control, and any ownership.

B. For 10 years after entry of this Order, Defendant must submit a 

compliance notice, sworn under penalty of perjury, within 30 days of any 

change in: (a) any designated point of contact; or (b) the structure of 

Defendant or any entity that Defendant has any ownership interest in or 

controls directly or indirectly that may affect compliance obligations arising 

under this Order, including: creation, merger, sale, or dissolution of the 

entity or any subsidiary, parent, or affiliate that engages in any acts or 

practices subject to this Order.

C. Additionally, for five years, the CRI Principal Executive Officer

must submit a compliance notice, sworn under penalty of perjury, within 30 

days of any change in: (a) name, including aliases or fictitious name, or 

residence address; (b) title or role in any business activity, including any 

business for which he performs services whether as an employee or 

otherwise and any entity in which he has any ownership interest, and 

identify the name, physical address, and any Internet address of the business 

or entity; or (c) ownership interest in the Collateral, security interest in the 

Collateral, or any other issue that may impact California’s interest in or 

ability to liquidate the Collateral; provided, however that the CRI Principal 

Executive Officer may cease reporting any further changes related to 

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subpart(c) upon full payment of the civil penalties provided under Section 

XVI.

D. Until all civil penalties are paid, Defendant, and the CRI Principal 

Executive Officer must submit to the Plaintiffs notice of the filing of any 

bankruptcy petition, insolvency proceeding, or similar proceeding by or 

against Defendant or the CRI Principal Executive Officer respectively, 

within 30 days of its filing.

E. Any submission to the Plaintiffs required by this Order to be sworn 

under penalty of perjury must be true and accurate and comply with 28 

U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury 

under the laws of the United States of America, and under the laws of the 

State of California, that the foregoing is true and correct. Executed on: 

_____” and supplying the date, signatory’s full name, title (if applicable), 

and signature.

F. Unless otherwise directed by a Commission representative in writing, 

all submissions to the Commission pursuant to this Order must be emailed 

to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal 

Service) to: Associate Director for Enforcement, Bureau of Consumer 

Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 

Washington, DC 20580. The subject line must begin: FTC v. CRI 

Genetics, LLC, Matter No. 2123005. 

G. Unless otherwise directed by a representative from the Office of the 

California Attorney General in writing, all submissions to California 

pursuant to this Order must be emailed to mike.osgood@doj.ca.gov (cc to 

privacy@doj.ca.gov) and sent by overnight courier (not the U.S. Postal 

Service) to: Senior Assistant Attorney General, Consumer Protection 

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Section, Office of the Attorney General, California Department of Justice, 

455 Golden Gate Avenue, Suite 11000, San Francisco, California, 94102. 

The subject line must begin: FTC v. CRI Genetics, LLC, Matter No. 

SF2021402346.

XIV. RECORDKEEPING

IT IS FURTHER ORDERED that Defendant must create certain 

records for 10 years after entry of the Order and retain each such record for 

5 years. Specifically, Defendant must create and retain the following 

records:

Accounting records showing the revenues from all goods or services 

sold;

Personnel records sufficient to show, for each person having 

managerial responsibilities related to this Order, whether as an employee or 

otherwise, that person’s: name; addresses; telephone numbers; job title or 

position; dates of service; and (if applicable) the reason for termination;

Records of all consumer complaints and refund requests, whether 

received directly or indirectly, such as through a third party, and any 

response;

All records of any market, behavioral, or psychological research, or 

user, customer, or usability testing, including any A/B or multivariate 

testing, copy testing, surveys, focus groups, interviews, clickstream 

analysis, eye or mouse tracking studies, heat maps, or session replays or 

recordings concerning the subject matter of this Order; 

All records necessary to demonstrate full compliance with each 

provision of this Order, including all submissions to any of the Plaintiffs; 

and

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A copy of each unique advertisement or other marketing material.

In addition, the CRI Principal Executive Officer, for any business 

that he, individually or collectively is a majority owner or controls directly 

or indirectly, must create the records identified in Section XIV(A)-(F) for 5 

years after entry of the Order and retain each such record for 5 years. 

XV. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring 

Defendant and the CRI Principal Executive Officer’s compliance with this 

Order:

A. Within 30 days of receipt of a written request from a representative 

of the Plaintiffs, Defendant and the CRI Principal Executive Officer, must: 

submit additional compliance reports or other requested information, which 

must be sworn under penalty of perjury; appear for depositions; and 

produce documents for inspection and copying. The Plaintiffs are also 

authorized to obtain discovery, without further leave of court, using any of 

the procedures prescribed by Federal Rules of Civil Procedure 29, 30 

(including telephonic depositions), 31, 33, 34, 36, 45, and 69. 

B. For matters concerning this Order, Plaintiffs are authorized to 

communicate directly with Defendant, and the CRI Principal Executive 

Officer. Defendant must permit representatives of Plaintiffs to interview 

any employee or other person affiliated with the CRI Principal Executive 

Officer or Defendant who has agreed to such an interview. The person 

interviewed may have counsel present.

C. Plaintiffs may use all other lawful means, including posing, through 

their representatives as consumers, suppliers, or other individuals or 

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entities, to Defendant, the CRI Principal Executive Officer or any 

individual or entity affiliated with Defendant or the CRI Principal 

Executive Officer, without the necessity of identification or prior notice. 

Nothing in this Order limits the Commission’s lawful use of compulsory 

process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 

57b-1.

D. Nothing in this Judgment limits the California Attorney General’s 

otherwise lawful use of compulsory process, including pursuant to 

California Government Code § 11180, et seq. 

XVI. MONETARY PROVISIONS

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of Seven Hundred Thousand Dollars 

($700,000) is entered in favor of California against Defendant and the CRI 

Principal Executive Officer jointly and severally, as civil penalties. The 

payment shall be allocated and used in accordance with California Business 

& Professions Code, §§ 17206 and 17536. This civil penalty is a nondischargeable debt under 11 U.S.C. § 523(a)(7) because it is a fine or 

penalty payable to and for the benefit of a governmental unit and is not 

compensation for actual pecuniary loss.

B. Defendant and the CRI Principal Executive Officer shall take no 

deduction, capital loss, write-off, or any other tax benefit on any federal or 

state tax return, amended tax return, IRS Form 1045, or any other tax filing, 

for payments toward satisfaction of this Judgment. Defendant and the CRI 

Principal Executive Officer shall cooperate in the filing of any tax forms 

required by state or federal law.

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C. This civil penalty shall be deemed satisfied and extinguished if 

Defendant and the CRI Principal Executive Officer timely pay a settlement 

sum totaling $700,000.00 as follows:

1. Within 30 days from entry of the Judgment, Defendant and/or the 

CRI Principal Executive Officer make a payment totaling $175,000.00

to California; and 

2. Within one year from entry of the Judgment, and every one-year 

anniversary thereafter, Defendant and/or the CRI Principal Executive 

Officer makes a further payment totaling $175,000.00, until the full civil 

penalty is paid.

D. Defendant and the CRI Principal Executive Officer agree that 

California may secure the payments specified in Section XVI.C (“Deferred 

Payments”) with a lien against any real commercial property owned, 

whether in whole or part, directly or indirectly, by the owners of Defendant 

or the CRI Principal Executive Officer. Defendant and the CRI Principal 

Executive Officer represent that they have the right and authority to grant 

California the security interests in the Collateral and that such Collateral is 

believed by them to have adequate equity to satisfy the remaining balance 

of the unpaid penalties. Defendant and the CRI Principal Executive 

Officer, at their expense, shall provide California the security interests in 

the Collateral including, but not limited to, cooperating with and taking all 

steps necessary to perfect and protect California’s secured interest in the 

Collateral, and signing and delivering all necessary instruments to 

California. In the event that Defendant and/or the CRI Principal Executive 

Officer fail to provide the security interest in the Collateral by within 90 

days of entry of this Order, the entire outstanding balance of the Judgment, 

including interest at the legal rate accruing on the unpaid amount as of the 

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date of entry of this Judgment, shall be immediately due and payable to 

California. Should Defendant and/or the CRI Principal Executive Officer 

timely make all the required payments specified in Section XVI.C, 

California agrees to take all necessary action to remove the liens on the 

Collateral and provide Defendant and the CRI Principal Executive Officer 

with an executed notice and acknowledgment of satisfaction of judgment 

within 30 days of receipt of final payment.

E. In the event any Deferred Payment is not made by the due date, the 

entire outstanding balance of the Judgment, including interest at the legal 

rate accruing on the unpaid amount as of the date of entry of this Judgment, 

shall be immediately due and payable to California, and the CRI Principal 

Executive Officer consents to entry of an order in this case appointing an 

equity receiver to take possession of and liquidate the Collateral.

XVII. RIGHT TO REOPEN AS TO MONETARY JUDGMENT

IT IS FURTHER ORDERED that:

A. Plaintiffs' agreement to, and the Court’s entry of, this Order is 

expressly premised upon the truthfulness, accuracy, and completeness of 

the representations Defendant, the CRI Principal Executive Officer and 

their counsel provided to Plaintiffs regarding Defendant’s and the CRI 

Principal Executive Officer’s financial condition and refunds issued by

Defendant. Plaintiffs materially relied upon these representations regarding 

Defendant’s and the CRI Principal Executive Officer’s financial condition 

and refunds issued by Defendant in negotiating and agreeing to the terms of 

this Judgment.

B. If, upon motion, this Court finds that Defendant or the CRI Principal 

Executive Officer intentionally made a material misrepresentation or 

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omitted material information in the representations provided by Defendant

and the CRI Principal Executive Officer, or on their behalf by counsel, 

regarding Defendant’s or the CRI Principal Executive Officer’s financial 

condition or refunds issued by Defendant, then the monetary judgment shall 

become immediately due and payable to California, without notice to 

Defendant or the CRI Principal Executive Officer, in the amount of 

$700,000.00 plus interest at the legal rate from the entry date of this 

Judgment, less any payments made to California. If California has filed a 

Notice of and acknowledgement of Satisfaction of Judgment it shall 

immediately and automatically be vacated and set aside.

XVIII. PROHIBITED PRACTICES BY RELATED BUSINESSES

IT IS FURTHER ORDERED that, for a period of 5 years following 

the entry of this Order, the prohibitions in Sections I through VII enjoining 

certain acts with respect to Defendant shall also apply to the CRI Principal 

Executive Officer and to any other business where he individually or 

collectively is a majority owner, has direct or indirect control, and/or is the 

principal executive officer of such other business. During the 5-year period

following the entry of this Order, any violation of those Sections by any 

business for which the CRI Principal Executive Officer is individually or 

collectively a majority owner, and/or is a principal executive officer shall 

be deemed violations of this Order by the CRI Principal Executive Officer

and shall also be deemed unlawful business practices under California 

Business & Professions Code, § 17200, et seq., to the extent the CRI 

Principal Executive Officer knew of or should have known of those 

violations. 

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XIX. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court retains jurisdiction of 

this matter for purposes of construction, modification, and enforcement of 

this Order. 

SO ORDERED this day of , 2023. 

 ________________________________

 UNITED STATES DISTRICT JUDGE

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ATTACHMENT A

[On CRI Genetics, LLC Letterhead]

[From CRI Genetics, LLC email address] 

IMPORTANT NOTICE ABOUT COURT SETTLEMENT

REGARDING CRI GENETICS, LLC DNA ANCESTRY TEST KITS

[content of letter, 16-point font]

Dear [Recipient]:

Our records indicate that you had previously purchased a DNA testing product 

or service from CRI Genetics, LLC (“CRI”). The Federal Trade Commission 

(“FTC”) and the California Attorney General have settled claims against CRI 

alleging that, among other things, CRI claimed that its DNA ancestry testing is the 

most accurate and detailed DNA ancestry testing available on the market, without 

having adequate evidence to support that claim when CRI made it. CRI has agreed 

not to make that claim in the future without adequate support for it.

Please note that the FTC and the California Attorney General didn’t allege that CRI 

has failed to safeguard your DNA information or that the information in the ancestry 

report you received is inaccurate.

You can read more about the settlement here [link to FTC press release].

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ATTACHMENT B 

[On CRI Genetics, LLC Letterhead]

[From CRI Genetics, LLC email address]

IMPORTANT NOTICE ABOUT YOUR DNA INFORMATION 

[content of letter, 16-point font]

Our records indicate that you had previously purchased a DNA testing product 

or service from CRI Genetics, LLC (“CRI”). The Federal Trade Commission 

(“FTC”) and the California Attorney General have settled claims against CRI 

alleging that, among other things, CRI claimed that its DNA ancestry testing is the 

most accurate and detailed DNA ancestry testing available on the market, without 

having adequate evidence to support that claim when CRI made it. CRI has agreed 

not to make that claim in the future without adequate support for it.

Please note that the FTC and the California Attorney General didn’t allege 

that CRI has failed to safeguard your DNA information or that information in the 

ancestry report that you received is inaccurate.

You can read more about the settlement here [link to FTC press release]. 

CRI has agreed to delete or destroy your personal and DNA information upon 

your request, in accordance with the terms of the settlement. To request deletion or 

destruction of this information, [fill in the opt-in instructions]. Please also note that 

once CRI deletes your information, you will no longer be able to access your 

purchased reports.

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ATTACHMENT C

8-Week Efficiency Guarantee

At CRI Genetics, we value your time and trust in our services. The lab process of 

examining DNA can be very time-consuming, especially if there are several 

customer samples to process at once. With this in mind, we're proud to offer a 

unique "8-Week Efficiency Guarantee" designed to provide you with your genetic 

reports promptly. Here's what it means for you:

Your 8-week countdown starts not from the time of purchase, but from the 

moment our lab receives your DNA sample. Every DNA sample received is 

subject to a quality control inspection. This is to ensure there is enough viable

DNA in the sample to process. If any issues arise during the quality control 

inspection, we'll send you a replacement DNA test kit at no extra cost. The 8-week 

countdown will then restart when the lab receives your new sample.

In rare occasions, your DNA sample may pass quality inspection, but a small 

handful of reports may still show up as "inconclusive results." If this happens with

your results, you will be eligible for a prorated refund of the reports missing from 

your order. Similarly, if an add-on (individually purchased) report such as Y-DNA

has inconclusive results, you will be refunded for that add-on. Your satisfaction is 

vital to us, and we're committed to ensuring you get the insights you're looking for.

In the rare scenario where we're unable to deliver any of your results within 8 

weeks from when we receive your sample, we promise a full refund. If only a 

fraction of your reports are unavailable, we'll adjust your refund proportionally, 

ensuring fairness and transparency.

Our "Efficiency Guarantee" is our commitment to you for timely, reliable genetic 

insights.

Unused Kits Sales

Stated Policy: To qualify for a refund. you must notify us within (90) days after 

your order is placed. We must confirm that your samples have not been shipped to 

our laboratory.

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Used Kits Sales

Stated Policy: If your kit has been delivered to the laboratory, and you receive 

your results within the 8 week efficiency guarantee you may not be eligible for a 

refund.

Report Subscription

Stated Policy: Initial Subscription refunds: You have up to 30 days after your 

initial order purchase of your subscription to refund your orders.

Renewal Subscription Refunds: You have up to 7 days after your renewal 

subscriptions to refund your orders. If you cancel your subscription renewal after 7 

days, you will retain access to your services for the remainder of the subscription 

but will not be eligible for a refund.

Report Credits

Stated Policy: Credits purchases are not refundable unless reports purchased 

have an inconclusive result.

Please contact customer care at USA 1-800-571-9216, UK +44-800-368-8243 to 

process your

refund inquiry.

Case 2:23-cv-09824 Document 8-1 Filed 11/20/23 Page 29 of 29 Page ID #:442