Lumosity has agreed to pay a $2 million fine after ads for its online "brain training" program were found deceptive, according to a Federal Trade Commission release
reported on by several major news media outlets.
The commission charged that Lumosity claimed its program would improve performance on everyday tasks, delay cognitive decline and protect the brain against mild cognitive impairment, dementia and Alzheimer's disease.
The settlement was widely reported, including by The Los Angeles Times
, CNN Money
and NBC News
, and was a trending story on news search sites.
filed on Monday in federal court in San Francisco ordered Lumos Labs, Lumosity's parent company, to pay $2 million "in redress and will notify subscribers of the FTC action and provide them with an easy way to cancel their auto-renewal to avoid future billing."
Lumosity promoted its program, consisting of 40 games, by saying it targeted and trained specific parts of the brain, charged the FTC. The company sold the games online and with mobile app subscriptions for $14.95 a month to $299.95 for lifetime memberships.
"Lumosity preyed on consumers' fears about age-related cognitive decline, suggesting their games could stave off memory loss, dementia and even Alzheimer's disease," said Jessica Rich, director of the FTC's Bureau of Consumer Protection. "But Lumosity simply did not have the science to back up its ads."
A Lumosity statement
was posted on the company's website about the FTC settlement.
"As you may be aware, we recently settled a Federal Trade Commission inquiry regarding certain advertising language from past marketing campaigns," said Lumosity. "We made the decision to settle in order to focus on what is most important to us: Delivering engaging cognitive training products to our 70+ million members and promoting innovation within the field of cognitive training."
"It is important to note that this settlement does not speak to the rigor of our research or the quality of our products. We proudly stand behind the Lumosity product that millions of our members train with each month,"
The court order also imposed a $50 million judgment against Lumos Labs, which was suspended "due to its financial condition after the company pays $2 million to the commission," said the FTC.
The order required Lumosity to tell subscribers who signed up for an auto-renewal plan between Jan. 1, 2009, and Dec. 31, 2014, about the FTC action and means to cancel their subscription.
© 2021 Newsmax. All rights reserved.