FTC Says 'Active Listening' Ad Tool Was Fake, Firms Pay $930K
Original: ‘Creepy’ Listening Tool for Targeted Ads Didn’t Actually Work, FTC Says
Why This Matters
Highlights ongoing concerns about privacy tech claims and regulatory enforcement
Cox Media Group and two other companies agreed to pay nearly $1 million to settle FTC allegations that they falsely claimed their 'Active Listening' service could collect audio from smart devices for targeted advertising when it was actually just email list reselling.
The Federal Trade Commission announced Cox Media Group, MindSift LLC, and 1010 Digital Works will pay $930,000 total to settle deception charges. The companies marketed 'Active Listening' technology claiming it could collect conversations from smartphones, smart TVs, and other devices using AI for ad targeting. The FTC alleges this was false advertising - the service was actually just overpriced email list buying with significant markups. CMG will pay $880,000 while the other firms pay $25,000 each. The companies also claimed consumers consented to voice data collection, which the FTC says was untrue. All three firms agreed to stop misrepresenting their marketing services and audio collection capabilities.