The FTC charges against the app developer Lumos Labs were settled in a $2 million immediate fine, due to deceptive marketing of the “brain training” app.
The app was advertised as an application which helps users perform better and reduce or delay cognitive impairment associated with age and other serious health conditions. The company advertised that using its games about 15 minutes 3-4 times a week could help customers achieve their “full potential in every aspect of life". However, the FTC found such attributes and representations to be unfounded and lacking the science evidence to back them up.
In addition to the $2 million immediate fine, the settlement requires that Lumos Labs must notify subscribers about the FTC action and must provide means to cancel their subscription.
This case demonstrates the FTC’s ongoing enforcement measures against misleading advertising, especially in the field of health related applications.