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 $1M for falsely claiming AI 'active listening' ad targeting used voice data
“this service did not, in fact, listen in on consumers' conversations or use voice data at all—nor did the service accurately place ads in customers' desired locations. Instead, the service the companies provided consisted of reselling—at a significant markup—email lists obtained from other data brokers.”
The FTC is requiring Cox Media Group and two partners to pay nearly $1 million for falsely marketing an 'Active Listening' AI service that claimed to target ads using voice data from smart devices. The service was actually just resold email lists, and the FTC clarified that burying consent in app terms of service does not constitute opt-in for voice data collection. This sets a meaningful precedent on both AI marketing deception and the limits of ToS-based consent for invasive data practices.