TIME Internet

Brain Game App Lumosity To Pay $2 Million Fine For ‘Deceptive Advertising’

Feds say they "preyed on consumers"

Lumos Labs, creators of popular ‘brain training’ app Lumosity, will pay $2 million to settle charges that they deceived consumers with unfounded claims, which include protecting against Alzheimer’s disease and helping users perform better at schools.

As part of the settlement announced Tuesday, the company will also have to notify online and mobile subscribers of the Federal Trade Commission (FTC) action and give them an easy way to cancel their subscriptions.

The FTC says the company “preyed on consumers’ fears about age-related cognitive decline” by advertising that training on their games for 10 to 15 minutes, three times a week could help users unlock their “full potential in every aspect of life.”

Read more: Can Brain Games Keep My Mind Young?

“But Lumosity simply did not have the science to back up its ads” says Jessica Rich, director of the FTC’s Bureau of Consumer Protection.

Online brain training resources like Lumosity have created a booming industry, pulling in $1 billion in revenue in 2012.

The industry is projected to hit $6 billion by 2020.




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