Lumosity must pay $2 million after “unfounded” brain game claims (Fast Company):
“The maker of brain game app Lumosity has agreed to pay $2 million to settle charges brought by the Federal Trade Commission, which alleged it deceived consumers about the product’s brain-training benefits.
The FTC said Tuesday that Lumosity made “unfounded claims” that its games could help users do better at work and school and help reduce the effects of conditions including Alzheimer’s, attention deficit hyperactivity disorder, and traumatic brain injury…
Lumosity said in a statement Tuesday that it intends to continue offering its products to users. “Neither the action nor the settlement pertains to the rigor of our research or the quality of the products—it is a reflection of marketing language that has been discontinued,” the company said…
Under the terms of the settlement, the company agreed to notify customers who signed up for auto-renewal subscriptions between Jan. 1, 2009 and Dec. 31, 2014, about the FTC’s allegations and give them the opportunity to cancel their subscriptions. The company also agreed not to make further scientific claims without “competent and reliable scientific evidence.”
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