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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.
It seems as though the plaintiffs became smart enough to realize it's possible to use the legal system to enrich themselves. Was it the game that did it?
"Who are you?" "No one of consequence." "I must know." "Get used to disappointment."
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.
They did get away with it, https://gigaom.com/2013/01/31/...
give me $24 Mil in revenue a year, I will gladly pay a one off $2 Mill fine, change my wording slightly e.g. stick the word "may" in it somewhere and continue trading as normal.
I finally felt well enough to try Lumosity ... [and got better]
This is why actual research has control groups. After your concussion started improving, you could have probably sprinkled the fairy dust I just invented on your head and would start to see improvement in a week. I'm sorry about your tough recovery, but your anecdote is no different than the moms who think vaccines caused their kid's autism. There are plenty of people who think some sugar water cured their cancer too.
-- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
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.