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Punjab Consumer Commission orders Cordlife to pay Rs 2.16 lakh over discarded cord blood

A Punjab district consumer commission ruled that Cordlife Sciences India must compensate a couple Rs 2.16 lakh after the firm discarded their newborn’s umbilical cord blood due to a payment dispute.

In a July 14 order, a Punjab district consumer commission directed Cordlife Sciences India to pay more than Rs 2.16 lakh to a couple whose newborn’s umbilical cord blood was discarded after a payment disagreement. The parents had paid an upfront amount, signed an agreement, and were told the sample would be collected after birth; the company later confirmed receipt but did not inform them that further payment was required.

When the firm requested a cheque on September 25, it immediately declared the specimen rejected, citing a clause that allowed disposal if payment was not made within 72 hours. The commission concluded the company engaged in unfair trade practice, noting contradictory payment terms in the contract and the lack of any notice or reminder. It ordered a refund of the initial Rs 6,490 with interest, Rs 2 lakh for mental anguish, and Rs 10,000 for litigation expenses. The decision underscores consumer protection concerns in the emerging cord-blood banking sector.

Why it matters

It highlights consumer rights and fair-trade obligations in the growing cord-blood storage industry.

In this story

cord bloodconsumer commissionunfair trade practicepayment disputecompensationCordlifePunjabnewborncontract clauselitigation costs