Stem cells have a number of amazing properties and tremendous potential to heal previously untreatable conditions. But they also have the potential to create a financial windfall for clinics that are more focused on lining their wallets than helping patients. Now the federal government is cracking down on some of these clinics in a couple of different ways.

The Food and Drug Administration (FDA) sent a warning letter to the Utah Cord Bank LLC and associated companies warning them that the products it sold – specifically “human umbilical cord blood, umbilical cord, and amniotic membrane derived cellular products” – were violating the law.

At the same time the Federal Trade Commission and the Georgia Office of the Attorney General began legal proceedings against Regenerative Medicine Institute of America. The lawsuit says the company claims its products can rebuild cartilage and help treat joint and arthritis pain, and is charging patients thousands of dollars for “treatments” that haven’t been shown to be either safe or effective.

Bloomberg Law reporter Jeannie Baumann recently wrote a fine, in-depth article on these latest steps against predatory stem cell clinics.

CIRM has been a fierce opponents of bogus stem cell clinics for years and has worked with California lawmakers to try and crack down on them. We’re delighted to see that the federal government is stepping up its efforts to stop them marketing their snake oil to unsuspecting patients and will support them every step along the way.

CIRM has produced a short video and other easy to digest information on questions people should ask before signing up for any clinical trial. You can find those resources here.

CIRM has also published findings in Stem Cells Translational Medicine that discuss the three R’s–regulated, reliable, and reputable–and how these can help protect patients with uniform standards for stem cell treatments .