WASHINGTON (Legal Newsline) – The Federal Trade Commission has reached a $2 million agreement with the creators and marketers of the Lumosity “brain training” program over allegations of deceiving consumers.
The FTC claims that Lumos Labs, makers of Luminosity, deceived its customers by claiming the app would help them perform better at work or in school and reduce or delay cognitive impairment associated with age and other medical conditions, yet having no scientific backing.
“Lumosity preyed on consumers’ fears about age-related cognitive decline, suggesting their games could stave off memory loss, dementia and even Alzheimer’s disease,” Jessica Rich, director of the FTC’s Bureau of Consumer Protection, said. “But Lumosity simply did not have the science to back up its ads.”
Lumosity, which has a program consisting of 40 games purportedly built to help train specific areas of the brain, heavily marketed itself in television and radio advertisements on networks such as CNN, Fox News, the History Channel, National Public Radio, Pandora, Sirius XM and Spotify. Users paid $14.95 a month or up to $299.95 for a lifetime membership to use the program.
As part of the agreement, Lumosity will pay $2 million in redress, notify auto-renewal subscribers of the FTC action and provide them with a cancel option. The proposed stipulated federal court order forces the company to have competent data before making any future claims.