Lumos Labs, the creators and owners of the “brain training” games on Lumosity.com have been ordered to pay a $2 million fine. The Federal Trade Commission announced that Lumos Labs will pay the settlement as a result of their deceptive business practices. Jessica Rich, Director of the FTC’s Bureau of Consumer Protection cited the company’s dodgy scientific claims, and marketing based on fear-mongering.
“Lumosity preyed on consumers’ fears about age-related cognitive decline, suggesting their games could stave off memory loss, dementia, and even Alzheimer’s disease, but Lumosity simply did not have the science to back up its ads.”
Lumos Labs charged members monthly for a subscription to their games. As part of the FTC agreement, the company must offer those players a free way to cancel their subscription regardless of their early cancellation penalty.