• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

2

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

3

The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow

1

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

2

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

3

The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
Marketing

‘Brain Game’-Maker Lumosity Forges Ahead After Reaching a $2 Million Settlement for Deceiving Consumers

By
Laura Entis
Laura Entis
Down Arrow Button Icon
By
Laura Entis
Laura Entis
Down Arrow Button Icon
November 16, 2016, 11:01 AM ET
460689429
Active human brainPM Images Getty Images
Add Fortune on Google for similar content.

For Lumos Labs, which makes the brain training app Lumosity, the year started on a sour note. Midway through the first week in January, the Federal Trade Commission announced it was suing the company for $2 million. Through its pervasive digital ads, TV spots, and radio voice-overs, Lumosity, the agency said, had peddled “unfounded claims” that users could reduce or delay serious cognitive conditions, including Alzheimer’s, dementia, and ADHD just by playing its games.

Again, not the most auspicious start to 2016. Fast forward eleven months to present, however, and Lumosity isn’t just still around — it’s releasing new features. “The FTC never had issues with the quality of the product,” says Steve Berkowitz, the company’s recently-installed CEO (he joined in November 2015). “It was with the advertising language.”

And so Lumosity continues making, and marketing, its products. In addition to playing the bank of 50-plus “brain games,” users are now able to track how their performance changes over time, pinpoint their strengths and weaknesses, plus see how their scores compare to other users’. The idea originated with curious consumers, says Berkowitz. As such, it neatly aligns with his central mission: “Focus on the emotional connection people still have with our product.”

Berkowitz contends the FTC lawsuit’s effect was more of a ripple than a wave — “we saw very minimal refund requests for our product,” he says — and that many users rallied around the company, expressing their support via calls and emails.

And yet it’s hard to believe the settlement didn’t have a significant financial impact. According to the FTC, Lumos Labs has sent more than 13,000 refund checks to subscribers, which adds up to over $1.9 million. (To qualify, consumers had to have spent at least $239 in subscription fees, which means the majority of paying players aren’t eligible.) What’s more, it forced the company to completely rebuilt its marketing efforts. Those ubiquitous ads inquiring whether you wanted to improve your brain’s performance “with the science of neuroplasticity”? Gone. In their place — far fewer ads that must walk a fine line, at once highlighting that the games’ are based in research, while refraining from explicitly stating that they offer any tangible cognitive benefits. Overall, it makes for a far less seductive sales pitch.

Berkowitz won’t disclose if the company is profitable. He does say things are going well, pointing to its 85 million users as proof (although that includes subscribers, plus anyone who has downloaded the app, since the company was founded in 2007). And while Lumosity’s website says it employs 160 people, Berkowitz says that number currently falls within the 120 to 130 range.

More broadly, a number of researchers have disputed the idea that playing brain games translates into any real-world value. In 2014, 70 prominent scientists published an open letter pushing back against the marketing claims made by companies like Lumosity. Shortly after, however, a group of 100 scientists wrote a response arguing that brain training’s effectiveness was actually backed by some pretty solid evidence. Since then, additional high-profile studies have come out — including an article, published in the journal of Psychological Science in the Public Interest, which found no evidence that brain games improve everyday cognition — but the topic is still very much up for debate.

“There is disagreement in the research world — but that’s what research is about,” Berkowitz says. “There are always open questions.” The company provides outside academics with access to its tools and data points, which have been incorporated into independent peer-reviewed studies.

While the methodology of some of its own, internal studies has been called into question — it’s unclear whether playing a Lumosity game translates into cognitive benefits in real life — Berkowitz is convinced people will continue playing.

“In this age where information demands more of our minds and mental fitness,” he says, Lumosity’s products are “going to be more important than ever.”

About the Author
By Laura Entis
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in

An overhead map of the location of Pickaxe Mountain and Iran's Natanz nuclear enrichment facility.
North AmericaDonald Trump
Trump threatens to bomb Iran’s deeply buried Pickaxe Mountain nuclear site: ‘There’s not a thing they can do about it’
By The Associated Press and Jon GambrellJuly 24, 2026
1 hour ago
Photo of RFK Jr.
HealthFDA
RFK Jr.’s peptide push narrowly gains backing from FDA advisers despite objections from scientists
By The Associated Press and Matthew PerroneJuly 24, 2026
1 hour ago
Canada celebrates new Detroit River bridge connecting Ontario to Michigan as 50% tariff feud keeps American officials away
North AmericaTariffs
Canada celebrates new Detroit River bridge connecting Ontario to Michigan as 50% tariff feud keeps American officials away
By The Associated Press, Mike Householder and Ed WhiteJuly 24, 2026
1 hour ago
dario
AIEconomics
Anthropic’s head of economics just explained why Anthropic’s CEO was wrong about a white-collar bloodbath
By Nick LichtenbergJuly 24, 2026
2 hours ago
jh
AINvidia
Jensen Huang just used his first ever X post to warn the AI industry not to make the mistake that software narrowly avoided in the 1980s
By Nick LichtenbergJuly 24, 2026
2 hours ago
pjm
EnergyData centers
The AI boom’s hidden electricity bill — and why you’re paying it
By Nick LichtenbergJuly 24, 2026
3 hours ago

Most Popular

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
Big Tech
Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
By Sydney LakeJuly 23, 2026
2 days ago
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
Economy
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
By Eleanor PringleJuly 24, 2026
13 hours ago
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
Economy
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
By Sasha RogelbergJuly 23, 2026
1 day ago
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
Real Estate
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
By Nick LichtenbergJuly 22, 2026
2 days ago
Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. “jock taxes”
Personal Finance
Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. “jock taxes”
By Joshua HongJuly 23, 2026
2 days ago
Current price of oil as of July 24, 2026
Personal Finance
Current price of oil as of July 24, 2026
By Joseph HostetlerJuly 24, 2026
11 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.