LearningRx
TypeFranchise
IndustryLearning
FoundedAugust 2002 (2002-08) in Colorado Springs, Colorado
FounderKen Gibson
Headquarters
Colorado Springs, Colorado
,
United States
WebsiteOfficial website

LearningRx is a franchise based in Colorado Springs, Colorado. The company claims to improve cognitive abilities.

Background and history

The company was founded by Ken Gibson, who started the first LearningRx in August 2002 in Colorado Springs, Colorado. The first franchise had $250,000 in revenue in its initial four months.[1] Other LearningRx franchises were opened in 2003; 27 were started that year.[1] The company says its teaching methods are grounded in founder Ken Gibson and his brother Keith Gibson's experience.[2]

As of 2016 the company says its games are "designed by scientists to challenge core cognitive abilities;"[3] prior to that, according to the FTC, it had "deceptively claim[ed] their programs were clinically proven to permanently improve serious health conditions like ADHD (attention deficit hyperactivity disorder), autism, dementia, Alzheimer's disease, strokes, and concussions".[4]

Starting in January 2015, the Federal Trade Commission (FTC) sued other companies selling "brain training" programs or other products intended to improve cognitive function, including WordSmart Corporation, the company that makes Lumosity, and Brain Research Labs (which sold dietary supplements) for deceptive advertising.[5] Later that year the FTC also sued LearningRx in the United States District Court for the District of Colorado in Denver for similar reasons.[3]

The FTC said LearningRx made unproven assertions in its marketing materials that clinical trials had demonstrated LearningRx helped increase people's IQ and income and mitigated clients' medical issues.[6] In its lawsuit, the FTC said LearningRx had been "deceptively claim[ing] their programs were clinically proven to permanently improve serious health conditions like ADHD (attention deficit hyperactivity disorder), autism, dementia, Alzheimer's disease, strokes, and concussions".[4] LearningRx had made these claims on its website, Facebook, Twitter, advertising mail, as well as in advertisements in newspapers and on radio.[7]

In 2016, LearningRx settled with the FTC by agreeing not to make the disputed assertions unless they had "competent and reliable scientific evidence" which was defined as randomized controlled trials done by competent scientists. For the judgment's monetary component, LearningRx agreed to pay $200,000 of a $4 million settlement.[6]

Reception

The "brain training" field has been controversial in the scientific community; in 2014 a group of 75 scientists put out a statement saying that most claims made by companies in the field were pseudoscience, which was countered several months later by an industry-organized group of scientists who said that there was evidence for their effectiveness.[3]

In 2012 Douglas K. Detterman of the Case Western Reserve University said that the program's exercises help improve skills in tests conducted by the institution itself but not improvement on skills in general and that the studies conducted by commercial services that support their claims of benefits are poorly done.[8]

See also

References

  1. 1 2 Wilson, Sara (2005-09-01). "Making the Grade: Franchising can help entrepreneurs make a difference in people's lives". Entrepreneur. Archived from the original on 2015-05-25. Retrieved 2015-05-25.
  2. ↑ Lima, Christina (2006-11-30). "LearningRx offers help to struggling students". The Oregonian. Archived from the original on 2010-08-09. Retrieved 2014-12-31.
  3. 1 2 3 Howard, Jacqueline (October 20, 2016). "Do brain-training exercises really work?". CNN.
  4. 1 2 Morran, Chris (2016-05-18). "LearningRx To Pay $200K For Allegedly Unproven Claims That Brain Training Can Improve Income, Treat Autism & ADHD". Consumerist. Archived from the original on 2016-10-31. Retrieved 2016-10-31.
  5. ↑ Austin, Neil (May 24, 2016). "Brainstorm: FTC Continues Enforcement Trend Against Cognitive Function Claims". Trademark and Copyright Law.
  6. 1 2 Heilman, Wayne (2016-10-16). "Lessons for LearningRx on comeback from federal lawsuit". The Gazette. Archived from the original on 2016-10-31. Retrieved 2016-10-31.
  7. ↑ Iandolo, Mark (2016-05-26). "LearningRx marketers to pay $200,000 to settle deceptive advertising allegations". Legal Newsline. Institute for Legal Reform. Archived from the original on 2016-10-31. Retrieved 2016-10-31.
  8. ↑ Hurley, Dan (2012-11-04). "The Brain Trainers". The New York Times. Archived from the original on 2014-12-31. Retrieved 2014-12-31.
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