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Thursday, January 07, 2016

Forced To Stop Selling Nonsense

I always smile a little when some company is shown up for fraudulent claims it was making and forced to stop selling nonsense.

The latest case involves Lumosity, which claimed its games would help consumers stave off memory loss, dementia, and Alzheimer's disease -- for $15/month. But the FTC's Bureau of Consumer Protection now says the company couldn't back up those claims, and was doing nothing more than preying on fears of age-related mental declines. Lumosity now has to refund money to the consumers it suckered, pay a penalty as high as $50 million, and can no longer make any claims unsubstantiated by randomized, blind, independent research.

Because evidence matters.