Lumo Labs has agreed to pay a $2m settlement after its brain-training app was accused of making false claims regarding mental health improvement.
The Federal Trade Commission observed that Lumosity is advertised as being able to combat chemotherapy side effects, strokes caused by cognitive impairment, PTSD, ADHD, brain injuries and Turner syndrome, a condition caused by the absence of an X chromosome among women.
However, the FTC's investigation into the app's real-world benefits found that "Lumosity simply did not have the science to back up its ads," according to bureau of consumer protection director Jessica Rich.
"Lumosity preyed on consumers' fears about age-related cognitive decline, suggesting their games could stave off memory loss, dementia, and even Alzheimer's disease," she added.
As a result of the deceptive advertising charges levelled against it, Lumo Labs has agreed to pay $2 million in settlements.
It has also agreed to notify all Lumosity subscribers of the action, as well as offering them the chance to cancel their subscriptions – which range from $15 monthly offerings to $300 lifetime memberships. Lumosity currently boasts more than 70 million registered users.
Lumo Labs issued a response to the FTC's action, stating:
"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."