FTC finalizes orders against Cox Media Group and two marketing firms over ad claims

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The Federal Trade Commission finalized consent orders against Cox Media Group and two marketing firms over allegations involving an AI-powered advertising service.

The Federal Trade Commission finalized consent orders against Cox Media Group and two marketing firms on Wednesday, closing a case over claims tied to an AI-powered advertising service called “active listening.”

The FTC said the companies told customers they used a special algorithm and voice data from consumers’ smart devices to target ads in specific geographic areas. The agency said the service was not based on voice data and that consumers had not opted into it.

The orders cover Cox Media Group, also identified as CMG Media Corporation, along with MindSift LLC and 1010 Digital Works LLC. Under the settlement, CMG must pay $880,000, while MindSift and 1010 Digital Works must each pay $25,000, for a total of $930,000. The FTC said the money will be used to provide redress to affected CMG customers.

The commission first announced complaints in May. In the final orders, the companies are barred from misrepresenting the qualities or features of their advertising or marketing services. They are also prohibited from making false claims about the collection, use or disclosure of voice data, about whether consumers gave consent, or about geographic targeting capabilities.

The FTC said it received two comments on the proposed settlement orders before the commission voted 2-0 to approve the consent agreements.

The FTC did not include additional details in the press release about the comments it received or any further proceedings. The final orders now take effect as approved.

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