FTC Finalizes Orders with Cox Media Group, Two Other Firms Settling Charges They Deceived Customers About “Active Listening” AI-Powered Marketing Service

The Federal Trade Commission concluded settlements with Cox Media Group, MindSift LLC, and 1010 Digital Works LLC, requiring combined payments of $930,000 for allegedly misrepresenting an AI-driven marketing service. The FTC alleged the companies falsely claimed the service analyzed smart device conversations to deliver geographically targeted ads, despite no such technology or consumer opt-in existing. Cox Media Group must pay $880,000, while MindSift and 1010 Digital Works each pay $25,000, with funds designated for customer redress.

The complaints, first announced in May, accused the firms of violating the FTC Act by deceiving customers about the service’s capabilities and data collection practices. The FTC stated that if the service had operated as advertised, its use of voice data without proper consent would have violated consumer protection laws. The settlements prohibit the companies from misrepresenting their advertising services, data collection methods, or consumer consent practices in future marketing claims.

Under the finalized orders, the companies are barred from making false statements about the features or effectiveness of their advertising services. This includes claims about voice data collection, consumer consent, and geographic targeting capabilities. The FTC emphasized that the settlements address deceptive practices while ensuring accountability for the alleged misrepresentations.

The FTC voted 2-0 to approve the consent agreements after reviewing public comments. The agency reiterated its role in protecting consumers and promoting competition, directing affected individuals to report fraud or bad business practices through official FTC channels. The settlements underscore the FTC’s scrutiny of data privacy claims in digital marketing services.