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Lumosity to pay $2M to settle deceptive ad allegations

5 years 9 months 1 week ago Tuesday, January 05 2016 Jan 5, 2016 January 05, 2016 11:01 AM January 05, 2016 in Health
Source: Associated Press

WASHINGTON - The developer of Lumosity "brain training" games will pay $2 million to settle federal allegations that it misled customers about the benefits of its online programs.

The Federal Trade Commission says the company's advertisements deceptively suggested that playing the games a few times a week could boost performance at work, in the classroom and even delay serious conditions like dementia and Alzheimer's. Under the settlement, Lumos Labs must contact its customers and offer them an easy way to cancel their subscriptions.

The San Francisco-based company sells access to its 40 games for about $15 per month or up to $300 for a lifetime membership.

Lumosity is one of the most visible companies in the burgeoning brain training industry, with annual sales estimated at over $1 billion, according to trade publications.

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