Lumosity Will Pay $2 Million to Settle Ad Allegations
By: CPR @ Feb 16, 2016
Lumosity, the company known for its brain-training games that purportedly boost performance in work and at school (and allegedly even prevent neurodegenerative diseases like Alzheimer’s) has agreed to settle charges brought against it by the Federal Trade Commission (FTC). The FTC accused Lumosity of deceptive and misleading advertising, contending that there is no evidence to support Lumosity’s promises of brain enhancement.
Lumosity Uses Deceptive Tactics to Drive Sales
The claims by the FTC against Lumosity suggest that Lumosity used deceptive tactics to drive sales of its products. Specifically, the FTC claimed that Lumosity preyed on consumers’ fears of age-related cognitive decline. While the company claimed that the use of its product could have amazing and preventative effects on the brain, there is no science to back up its claims.
According to the FTC’s specific complaint, Lumosity sold online and mobile application subscriptions, which ranged in price from $14.95 to $299.95. The company explicitly stated that using the online and mobile apps could help users reach their full potential in “every aspect of life.” The complaint alleged that Lumosity falsely claimed that by using the products: (1) clients would see benefits in work and school performance; (2) be at a decreased risk for neurodegenerative diseases; and (3) could reduce the risk cognitive decline caused by a number of conditions, including post-traumatic stress disorder, stroke and ADHD.
Lumosity Settles With the FTC
To settle the FTC’s claims, Lumosity agreed to pay a $2 million fine. It also agreed to notify all of its customers of the claim with the FTC, and provide them with an easy way of cancelling their subscriptions, according to an article in TIME.
False Advertising and Defective Products
In light of the FTC complaint, it is likely that a number of consumers who purchased the apps from Lumosity will be requesting a refund. Some consumers may even pursue civil action against the company.
When a company’s false advertising results in financial or other losses, consumers have the right to take legal action. Misleading or deceptive claims are illegal, and a claim may be sought if false advertisements about a product’s price, quality, or purpose are made.
Contact a Product Liability Attorney Now
If you believe that you are a victim of false advertising of a product and believe that you have suffered financial or non-financial injuries as result, you may have a claim. The best course of action is to contact an experienced product liability attorney. An attorney can help you to understand the laws regarding misrepresentation of a product, as well as your legal rights for pursuing action and whether or not you have a case.
At the law firm of Cohen, Placitella & Roth, P.C., our product liability attorneys serving New Jersey and Pennsylvania are always ready to discuss a potential claim. If you have questions, do not hesitate to contact our offices today to schedule a free case consultation with one of our experienced lawyers. We are reachable at (215) 567-3500.
Cohen, Placitella & Roth, PC (215) 567-3500