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The FTC announced that Cox Media Group, MindSift LLC and 1010 Digital Works will pay a combined $930,000 to settle allegations they falsely marketed an “Active Listening” advertising service that claimed to capture consumers’ conversations from smartphones, smart TVs and smart speakers for AI-driven ad targeting. The agency says the product didn’t use device audio at all and was merely reselling email lists at marked-up prices; CMG agreed to pay $880,000 and the other firms $25,000 each. The set
The FTC action signals heightened regulatory scrutiny of AI-powered marketing claims and deceptive data practices, affecting vendors and buyers of ad tech services. Tech professionals must reassess compliance, marketing language, and due diligence for AI and consumer data products.
Dossier last updated: 2026-05-22 08:17:40
The FTC announced a $880,000 settlement with Cox Media Group (CMG) Local Solutions over false claims that its Active Listening service used AI to capture consumers’ conversations from smartphones and smart TVs to deliver localized ads. The agency found the service did not access or use voice data or accurately geotarget ads; instead CMG resold third-party email lists. Two partner marketing firms, 1010 Digital Works LLC and MindSift LLC, will each pay $25,000. CMG had promoted Active Listening in a now-deleted blog and claimed a partner could access microphone data, but admitted it only used an aggregated, encrypted dataset. The FTC noted such covert voice-data targeting would violate consent rules under Section 5.
A marketing division of Cox Media Group, CMG Local Solutions, will pay an $880,000 settlement after advertising a now-deleted service called Active Listening that claimed devices like smartphones and smart TVs were "listening" and supplying voice data to target ads. The November 2023 claims—flagged by outlets including 404 Media and archived via the Wayback Machine—sparked consumer alarm and media scrutiny over privacy and the use of voice data for ad targeting. The settlement addresses misleading marketing and underscores regulatory and reputational risks for firms that imply real-time device surveillance or unauthorized use of voice data for targeted advertising.
The FTC has settled charges against Cox Media Group, MindSift and 1010 Digital Works for deceptive marketing of an “Active Listening” AI service, requiring the firms to pay nearly $1 million. Regulators say the companies claimed the service listened to consumers’ conversations via smart devices to enable real-time ad targeting, but in reality it resold third-party email lists and did not use voice data or accurately place ads. The FTC also found the firms falsely asserted consumers had given opt-in consent via app terms of service, which the agency said is not adequate for use of voice data. The decision reinforces regulatory scrutiny of privacy claims and marketing around AI-driven consumer surveillance.
FTC to Require Cox Media Group to Pay Nearly $1million to Settle Charges They Deceived Customers About “Active Listening” AI-Powered Marketing Service
The FTC has ordered Cox Media Group, MindSift and 1010 Digital Works to pay nearly $1 million to settle charges they falsely marketed an “Active Listening” AI service that purported to capture consumers’ conversations via smart-device microphones for real-time ad targeting. The regulator found the firms did not use voice data or place ads as claimed; instead they resold email lists from data brokers at a markup. The case underscores regulatory scrutiny of AI and privacy claims in advertising and aims to curb deceptive uses of AI marketing buzzwords. It also helps debunk persistent fears that smartphones and smart speakers are being routinely used to eavesdrop for ad targeting.
The FTC announced that Cox Media Group, MindSift LLC and 1010 Digital Works will pay a combined $930,000 to settle allegations they falsely marketed an “Active Listening” advertising service that claimed to capture consumers’ conversations from smartphones, smart TVs and smart speakers for AI-driven ad targeting. The agency says the product didn’t use device audio at all and was merely reselling email lists at marked-up prices; CMG agreed to pay $880,000 and the other firms $25,000 each. The settlements bar the companies from misrepresenting audio-collection capabilities and direct payments to businesses that bought the service. The case underscores regulatory scrutiny around privacy claims and deceptive AI/audio marketing pitches.