FTC Fines Cox Media Group $1M Over Fake AI "Active Listening" Ad Claims
Original: FTC to Require Cox Media Group, Two Other Firms to Pay Nearly $1 Million to Settle Charges They Deceived Customers About “Active Listening” AI-Powered Marketing Service
FTC fines Cox Media Group and others $1M for falsely claiming their "Active Listening" service targeted ads by spying on smart device microphones.
The FTC has settled with Cox Media Group and two other firms for $1 million over deceptive "Active Listening" marketing claims. Although the companies pitched that they used AI to listen to real-time conversations via smart devices, the FTC revealed they actually just resold marked-up email lists. The FTC also clarified that burying voice-data consent in standard Terms of Service is legally inadequate.
The U.S. Federal Trade Commission (FTC) announced a settlement with three companies—Cox Media Group (CMG), MindSift, and 1010 Digital Works—who will pay nearly $1 million in penalties for falsely promoting their "Active Listening" AI marketing service.
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