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

CMG Media CorporationAugust 27, 2026Federal Trade Commission

Penalty Amount

$930,000

Summary

The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.

Remedy

The companies must pay a total of $930,000 (CMG $880,000, MindSift $25,000, 1010 Digital Works $25,000) to provide redress to affected customers. They are also prohibited from making any misrepresentation about the qualities or features of their advertising or marketing services, the collection and use of voice data, whether consumers have consented to such collection, and the geographic targeting capabilities of their services.

Monetary PenaltyInjunction

Contract Impact

In-house legal teams should review vendor and customer agreements related to marketing and advertising services, particularly those involving data collection from smart devices or voice data. Contracts should include accurate representations about data collection practices, require explicit consumer consent mechanisms, and include warranties that services comply with the FTC Act. Additionally, agreements with marketing partners should contain indemnification clauses for false or misleading claims about data collection or targeting capabilities, and should specify that any AI-powered features are accurately described.

Contract Search Terms

voice data collectionconsumer consentopt-in mechanismactive listeningAI-powered marketingsmart device datatargeted advertisingFTC Act compliancedata privacyadvertising claims

Laws Cited

FTC Act
15 U.S.C. § 45

Violation Types

Entity Details

Entity

CMG Media Corporation

Industry

Advertising

Official Sources

Source Evidence

Entity Name
"CMG Media Corporation, which does business as Cox Media Group"
Fine Amount
"pay a total of $930,000"
Fine Amount
"CMG must pay $880,000 while both MindSift and 1010 Digital Works must each pay $25,000"
Laws Cited
"would itself violate the FTC Act"
Violation Types
"deceived customers by falsely claiming to offer an AI-powered service that could target localized ads based on conversations captured from consumers’ smart devices and that consumers had opted into such targeting."
Violation Types
"the marketing service wasn’t based on voice data, and consumers hadn’t opted into this service."

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