'Brain Training' Lumosity Maker Agrees to FTC Settlement for Deceptive Ads

Lumos Labs, which created and markets the online and mobile "brain training" program Lumosity, agreed to pay $2 million in consumer redress to settle FTC allegations that the company deceived consumers with "unfounded claims" that its games could help reduce or delay cognitive impairment, the agency said Tuesday in a news release. The order that the release describes imposes a $50 million judgment that will be suspended due to the company's financial condition after it pays the $2 million, the FTC said. “Lumosity preyed on consumers’ fears about age-related cognitive decline, suggesting their games could stave off memory loss, dementia, and even Alzheimer’s disease,” said Consumer Protection Bureau Director Jessica Rich, saying the company didn't have the science to back up its ads. Lumos Labs in an emailed statement said "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 it continues to invest "heavily" in research and game development.