Lumosity, a company that makes and sells "brain training" materials that were said to be capable of nurturing the human brain and protecting if from decline and deterioration, has settled charges with the Federal Trade Commission (FTC). The FTC had said the company's advertisements were deceptive and misleading. The FTC announced the settlement Tuesday, saying Lumosity will pay $2 million as compensation to redress the harm done to its subscribers.
Lumosity had claimed in advertisements broadcast on a wide range of media, including radio and television, that its games and "brain training" programs would benefit the health of people that used them by making them, among other things, better at work. The advertisements also made implicit claims that the company's products were the result of scientific research and that using these games and training materials would help fight against or delay cognitive deterioration associated with aging or even with conditions such as Alzheimer's disease, according to the Associated Press.
One of the terms of the settlement is that Lumosity must offer subscribers the chance to cancel their online and app-based subscriptions to the company's products, as 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's position regarding the settlement was expressed in a letter 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."
