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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?
Oh, wait. I forgot what country this was. They probably didn't give the right bribes out to be in the clear. NM, nothing to see here.
Name me one fucking instance where the settlement went to the consumers who were misled. This will go the lawyers, and you'll get mailed a fucking coupon for $5 off your next goddamned month of Lumosity.
These settlements are complete horseshit, and don't act as a deterrent. Compensate consumers my ass.
And, yes, I'm intentionally swearing for effect, because claiming this will compensate consumers if a completely fucking lie.
You want to compensate people and act as a deterrent? Let them line up and take a swipe at the CEO. THAT might stop this kind of behavior. This $2 million settlement? That won't do a damned thing.
Lost at C:>. Found at C.
To me that suggests that, 24 Mil in revenue in 2012 notwithstanding, $2 million is already enough to ruin the company.
"Preceded by itself yields falsehood" preceded by itself yields falsehood.