Cox Media Group Settles FTC Claims Over False AI Listening Service
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Cox Media Group (CMG) Local Solutions will pay $880,000 to settle Federal Trade Commission (FTC) allegations that it falsely advertised an AI-powered service that could target ads by listening to consumer conversations. The FTC found the service did not listen to conversations or use voice data, but instead resold email lists. The settlement funds will be distributed to affected customers.
Facts First
- Cox Media Group (CMG) will pay $880,000 to settle FTC allegations of false advertising.
- The FTC found CMG's 'Active Listening' service did not listen to conversations or use voice data from smart devices.
- The service instead resold email lists from other data brokers at a significant markup.
- Settlement funds will be distributed to affected customers.
- Two marketing firms involved will each pay $25,000 for their work with CMG.
What Happened
The Federal Trade Commission (FTC) announced a settlement with Cox Media Group (CMG) Local Solutions over allegations it falsely advertised an AI-powered ad-targeting service. In November 2023, CMG advertised a service called Active Listening, claiming it could use 'voice data' from smartphones and smart TVs to target ads. The FTC found the service did not listen to conversations or use voice data, nor did it accurately place localized ads. Instead, the service consisted of reselling email lists obtained from other data brokers. CMG will pay $880,000, and two marketing firms involved, 1010 Digital Works LLC and MindSift LLC, will each pay $25,000.
Why this Matters to You
This settlement clarifies that a specific advertised service was not secretly listening to your conversations through your devices. The FTC's action may discourage other companies from making similar unsubstantiated claims about data collection, which could help protect your privacy from deceptive marketing. You may be eligible for a payment if you were affected by CMG's service, as the settlement funds will be distributed to customers.
What's Next
The $880,000 from CMG will be distributed to affected customers. The FTC's settlement with CMG and the two marketing firms is now finalized, concluding this enforcement action. This case may lead to increased scrutiny of how companies market AI and data-driven advertising services, potentially prompting more transparent disclosures in the future.