The FTC found that all three companies made false claims about voice-data collection, consumer consent, and geographic targeting capabilities. MindSift and 1010 Digital Works also provided misleading sales materials to promote the service. The proposed consent orders, approved 2-0 by the FTC, prohibit the defendants from misrepresenting the features of their advertising services, their use of voice data, and whether consumers have consented to data collection. The orders will undergo Federal Register comment before becoming final.
Attorneys handling consumer protection, advertising, or data privacy matters should note the FTC's continued aggressive stance on deceptive AI marketing claims. The agency is scrutinizing whether companies overstate their data-collection capabilities and whether they falsely invoke smart-device surveillance to create the appearance of sophisticated targeting. For in-house counsel at marketing or adtech firms, the settlement signals that vague claims about AI-powered consumer insights paired with unsubstantiated voice-collection rhetoric will draw enforcement action.