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Lumos Labs to pay $2m Deceptive Advertising settlement

“Lumosity preyed on consumers' fears about age-related cognitive decline"

Lumos Labs, the developer behind brain training app Lumosity, has to pay $2 million to settle the Federal Trade Commission's Deceptive Advertising Charges over its claims about the mental benefit of its app.

"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 Jessica Rich, director of the FTC's Bureau of Consumer Protection.

The FTC also found that Lumos Labs made claims about reducing cognitive impairment associated strokes, traumatic brain injuries, PTSD, ADHD, the side effects of chemotherapy, and Turner syndrome.

"But Lumosity simply did not have the science to back up its ads."

As a further penalty Lumos Labs will also have to will inform its subscribers of the FTC action and offer them an easy way to cancel their subscriptions. Subscriptions to the service range from monthly packages at $15 to lifetime memberships for $300.

The company offered the following statement:

"Lumos Labs, doing business as Lumosity, has recently reached a settlement with the Federal Trade Commission regarding certain advertising language used in previous marketing campaigns. This decision will allow the company to move on and continue delivering its research-based cognitive training platform to millions of active and future users.

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. Our focus as a company has not and will not change: We remain committed to moving the science of cognitive training forward and contributing meaningfully to the field's community and body of research.

Lumosity has made strong contributions to the scientific community, including our work with the Human Cognition Project initiative. We invest heavily in research and game development to ensure that our products are engaging and provide value to users. The recent peer-reviewed clinical test published in the journal PLOS One is a large, randomized, active-controlled trial of our cognitive training program. The study reported that participants who trained with Lumosity for 10 weeks improved on an aggregate assessment of cognition. Going forward, a key focus of our ongoing research is to build on these studies to better understand how training-driven improvements on tests of cognition translate to performance in participants' everyday lives."

Lumos Labs boasts 70 million registered users worldwide from 182 countries and 35+ million downloads of its iOS and Android apps. On its website it states that "our scientists work side-by-side with our designers. They make sure each game maintains the core mechanics of the original task designed to challenge a specific cognitive skill."

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Chris Buckley

Sales Manager

Chris Buckley joined GamesIndustry in January 2010, now based in BC Canada, Chris is a veteran of the global games industry. Starting out in coin-operated amusement machine (arcades) trade publishing in 1995, for Centaur Communications ‘AB (Amusement Business) Europe’ magazine, Chris made the leap into consumer games and joined MCV Media in February 2000, where he quickly became head of sales looking after a number of entertainment brands and sales staff, before immigrating to Canada in 2008. Chris now handles all commercial sales activity for, and sponsorships for GamesIndustry’s trade events like the GI Investment Summit.