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Lumosity to refund $2M for unproven 'brain training' apps in U.S.

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

Lumosity preyed on consumers' fears about age-related cognitive decline, Federal Trade Commission says

Lumosity did not have the science to back up its ads, the Federal Trade Commission says. (Evan Hiltunen/Associated Press)
The developer of Lumosity "brain training" gameswill pay $2 million USto settle federal allegations that it misled
customers about the cognitive benefits of its online apps andprograms.

The U.S. Federal Trade Commission said Tuesday the company'sadvertisements deceptively suggested that playing the games a fewtimes a week could boost performance at work, in the classroom andeven delay serious conditions like dementia. Under the settlement,Lumos Labs must contact its customers and offer them an easy way tocancel their subscriptions.

The San Francisco company frequently promoted its games throughnational TV and radio stations including CNN, Fox News and NationalPublic Radio. The company also used Google advertising services todrive traffic to its website, the FTC said in a statement.

"Lumosity preyed on consumers' fears about age-related cognitivedecline, suggesting their games could stave off memory loss,dementia, and even Alzheimer's disease," said Jessica Rich, adirector in FTC's consumer protection unit. "But Lumosity simplydid not have the science to back up its ads."

Customers pay anywhere from $15 US, for a monthly subscription, orup to $300 USfor lifetime access to Lumosity's online and mobile apps.

Last April, an investigation by CBC'sMarketplacerevealedthat brain training games such as Lumosity may not make your brain perform better in everyday life.

When54 adults, including host TomHarrington, didthe brain training at least three times per week for 15 minutes or more over a period of between two and a half and four weeks, researchers found no significant improvement on tests of memory, reasoning, concentration and planning.

An FTC spokesman said Tuesday's action is the first governmentsettlement with a maker of apps intended to boost brain health.

Previous settlements have involved makers of dietary supplements andother products intended to boost mental performance. The governmentagency, which regulates consumer advertising, plans to refund the $2million US to Lumosity customers. The agency initially obtained a $50million US judgment against Lumos Labs, but the amount was downsizedbecause of company's inability to pay.

Lumosity is one of the most visible services in the burgeoningbrain training industry, which has estimated sales of over $1billion US per year, according to trade publications.

Under federal law, only products that have been reviewed by the U.S.Food and Drug Administration can claim to treat or prevent seriousdiseases or conditions. To date, the FDA has not approved any braintraining programs.

In 2014, more than 70 prominent neurology and psychologyresearchers published a consensus statement critical of the braintraining industry, citing its "frequently exaggerated" marketing.

"The aggressive advertising entices consumers to spend money onproducts and to take up new behaviours, such as gaming, based onthese exaggerated claims," the experts said.

While studies have shown that gaming participants can improvetheir performance on simple tasks, the experts concluded there is nocompelling evidence that games "reduce or reverse cognitivedecline."