Lumosity Settles FTC Charges On Misleading Ads About Brain Games
Lumosity has created and sold a number of "brain training" materials that can nourish the brain and protect it from "decline and deterioration". However, the Federal Trade Commission (FTC) had charged its advertisements of being deceptive and misleading, according to HNGN.
On Tuesday, the FTC announced the settlement, declaring that Lumosity should pay $2 million as compensation for the damage to its subscribers.
Its advertisements broadcast on a number of channels, including the Internet, radio, and television, claimed that its "brain training" programs would help people to improve in everything, including work.
It had claimed that its products were the result of scientific research and its games and training materials would help fight cognitive deterioration, aging or conditions such as Alzheimer's disease, according to the Associated Press.
Hence, Lumosity needs to offer subscribers the option of cancelling their online and app-based subscriptions, otherwise "these would be automatically renewed".
"Lumosity preyed on consumers' fears about age-related cognitive decline.... But Lumosity did not have the science to back up its ads," said Jessica Rich, Director of the Bureau of Consumer Protection at the FTC, in an FTC press release.
The company has declared its stand on its website "As you may be aware, we recently settled a Federal Trade Commission inquiry regarding certain advertising language from past marketing campaigns. We made the decision to settle in order to focus on what is most important to us.... 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."