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Brain Game Maker Lumosity Fined $2 Million For False Advertising (sciencemag.org)
sciencehabit writes: Lumos Labs, the company that produces the popular 'brain-training' program Lumosity, yesterday agreed to pay a $2 million settlement to the Federal Trade Commission (FTC) for running deceptive advertisements. Lumos had claimed that its online games can help users perform better at work and in school, and stave off cognitive deficits associated with serious diseases such as Alzheimer's, traumatic brain injury, and post-traumatic stress.
The $2 million settlement will be used to compensate Lumosity consumers who were misled by false advertising, says Michelle Rusk, a spokesperson with the FTC in Washington, D.C. The company will also be required to provide an easy way to cancel auto-renewal billing for the service, which includes online and mobile app subscriptions, with payments ranging from $14.95 monthly to lifetime memberships for $299.95. Before consumers can access the games, a pop-up screen will alert them to the FTC's order and allow them to avoid future billing, Rusk says.
The $2 million settlement will be used to compensate Lumosity consumers who were misled by false advertising, says Michelle Rusk, a spokesperson with the FTC in Washington, D.C. The company will also be required to provide an easy way to cancel auto-renewal billing for the service, which includes online and mobile app subscriptions, with payments ranging from $14.95 monthly to lifetime memberships for $299.95. Before consumers can access the games, a pop-up screen will alert them to the FTC's order and allow them to avoid future billing, Rusk says.
Wait, let me get this straight, you can sell herbal supplements with the same claim and weak/non-existent scientific support and be in the clear, but this is worthy of a fine? Or how about selling "unlimited" data plans that are explicitly NOT unlimited, and not be hit with false advertising either?
It's like complaining about someone finding a cure for lung cancer while liver cancer still kills people.
Those apps that prey on people's quest for better health are a shame and it's a good thing if they get fined. There are other crooks out there but let's celebrate the victories, not use them to promote vague accusations of bribery.
lucm, indeed.