About

FTC settles with Cox Media Group and two partners over fake “Active Listening” ads

Published
Score
11

Why it matters

The Federal Trade Commission has settled charges against Cox Media Group, MindSift LLC, and 1010 Digital Works LLC for deceiving small-business customers about an AI-powered marketing product called "Active Listening." The companies claimed the service used smart-device conversations to target local ads with consumer consent. In reality, the product did not access voice data at all; instead, the firms resold email lists purchased from data brokers. Cox Media Group will pay $880,000 in the settlement, while MindSift and 1010 Digital Works will each pay $25,000.

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.

mail Subscribe to Privacy email updates

Primary sources. No fluff. Straight to your inbox.

Also on LawSnap