Arizona Attorney General Kris Mayes has filed a lawsuit against CBR, a major national cord blood banking company, accusing it of exploiting vulnerable parents of newborns for financial gain. The company, which collects and stores stem cells from umbilical cord blood, has been under scrutiny for years for its business practices.
Mayes claims that CBR misleads parents by charging exorbitant upfront and annual fees while failing to provide adequate transportation and temperature control for the samples, which may compromise their effectiveness.
Additionally, the company allegedly paid doctors up to $700 in kickbacks per patient to recommend their services. Mayes described this as an unethical practice that preys on the trust of new parents during an emotional and vulnerable time.
The lawsuit aims to hold CBR accountable for these deceptive practices and protect consumers from being misled about the benefits and risks of cord blood banking.
Stem cells from cord blood are primarily used in the treatment of blood disorders such as leukemia, lymphoma, and other conditions, and have potential applications in regenerative medicine and genetic research.
There are two main types of cord blood banking. Public cord blood banking involves donating the blood to a public bank where it can be used by anyone in need, whether for research, clinical trials, or for patients requiring a cord blood transplant who cannot find a match in a traditional blood bank. Private cord blood banking, on the other hand, involves storing the blood for the exclusive use of the child or their family, in case of future medical needs.
The benefits of cord blood banking include the potential for treating a variety of blood-related illnesses and providing future regenerative medicine options. Stem cells are being researched for use in treatments for heart disease, spinal cord injuries, and other conditions.
Families who opt for private banking may feel comforted by having a medical resource available in case it is needed in the future, especially if siblings share a similar genetic profile.
However, there are several considerations, particularly regarding the cost. Private banks charge an initial fee for collection and processing, as well as annual storage fees, which can amount to thousands of dollars over time.
Not all stored cord blood samples are suitable for use, and the success rates for treating certain conditions with stem cells are still being researched. This can lead some families to question the value of private banking, especially given the uncertainty about how useful the stored stem cells might be in the future.
The commercialization of banking has also raised ethical concerns. Some argue that it preys on vulnerable parents who may not fully understand the long-term costs or potential uses of the stored blood. There is also debate over the regulation of this practice and the marketing strategies employed by some private companies.
