Lumosity settles claims it misled you over 'mind coaching'
Did you see the countless wave of Lumosity mind coaching advertisements and assume there was no method that a bunch of video games might considerably enhance your thoughts? You are not alone. The model’s mum or dad firm, Lumos Labs, is paying the Federal Commerce Fee $2 million to settle costs that it misled clients with bogus claims about Lumosity’s talents. The FTC does not beat across the bush: it says there isn’t any proof to help speak of boosting your mental efficiency. Furthermore, Lumosity does not disclose that lots of its testimonials are solicited via contests, and its advertisements “preyed on shoppers’ fears” about growing older.
The penalty sounds mild given how a lot Lumosity costs (as much as $300 for lifetime entry), however the FTC won’t have a lot selection. Whereas its official plan slaps Lumos Labs with a $50 million penalty, it is accepting the a lot smaller quantity because of the firm’s “monetary situation.” If it is any comfort, although, the payout is probably going the least of the corporate’s worries. The FTC settlement validates the longstanding accusations that Lumosity is little greater than snake oil — it’s going to be a lot more durable to shake that dangerous fame.