'Taking advantage of parents’ love': Paxton sues cord blood bank, alleges it misled new parents
Biologist Krzysztof Machaj shows stem cell samples, stored in large liquid nitrogen freezers, at the headquarters of the Polish umbilical cord blood bank PBKM/FamiCord on November 26, 2019 in Warsaw. - Submerged in liquid nitrogen vapour at minus 175
AUSTIN, Texas - Texas Attorney General Ken Paxton has filed a lawsuit against a company that stores umbilical cord stem cells from newborns, claiming the company uses misleading practices to convince new parents to use the company.
Paxton claims CBR Systems uses "misleading, emotional sales pitches" to convince parents to use their private blood banking service as opposed to a public bank.
What they're saying:
"Although CBR represents that private cord blood banking can be used to treat over 80 serious medical conditions, the odds that a child could ever use his or her own cord blood are nearly zero," the attorney general's office said.
Paxton also said a majority of cord blood transplants come from public banks and that the privately collected sample is not enough for a transplant.
"Taking advantage of parents’ love for their children is reprehensible and illegal," Paxton said. "CBR has systematically put their greed ahead of consumers and the health of Texans, and it’s time for the company to face justice. The actions taken unfairly targeted new parents and were specifically designed to weaponize a parent’s instinct to protect their kids in order to make a quick buck. That’s unacceptable, and I’m filing this lawsuit to put an end to this deception immediately."
What is cord blood banking?
Blood from the umbilical cord and placenta contain blood rich in blood stem cells that can help treat blood cancers and disorders, according to the Health Resources and Service Administration.
Parents who choose to donate cord blood from their newborns have the option of donating to a public cord blood bank or a private cord blood bank.
Donating to a public bank is free, while private banks charge for collection and storage.
According to CBR's website, yearly storage fees for cord blood are $210. The company will also store cord tissue, which brings the cost to $420 per year. While the company does not list the initial cost for collecting and storing blood, their website shows a fee of $1,295 for banking cord tissue.
Paxton's lawsuit is asking for civil penalties and injunctive relief for violating Texas' consumer protection laws.
The Source: Information on the Texas Attorney General's lawsuit comes from the Texas Attorney General's Office. Information on umbilical cord blood donation comes from the Health Resources and Service Administration. Information on storage costs from CBR comes from CBR's website.