The company behind the popular Lumosity brain training program must pay the government $2 million to settle allegations that it deceived consumers in ads saying their games improve brain function.
The Federal Trade Commission said Tuesday said that Lumos Labs, the company behind Luminosity, must pay $2 million and notify program subscribers of the settlement. The company must also provide an easy way for subscribers to cancel their auto-renewal and avoid future billing, according to the release from the agency.
Luminosity claimed that its collection of about 40 games can help people to perform better at school and even help reduce or delay the decline of cognitive function, the agency noted.
“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 agency’s Bureau of Consumer Protection, in a statement.
Rich said the company couldn’t back up its advertisements on national TV and other mediums through science.
The agency said the company failed to disclose that some testimonials from consumers only came after they got prizes such as a free iPad.
Lumos Labs said that the settlement doesn’t pertain to the “rigor of our research or the quality of the products. It is a reflection of marketing language that has been discontinued.”
