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SettlementMedium Risk

FTC Settlement with Cox Media Group and Two Other Firms for Deceptive 'Active Listening' AI-Powered Marketing Service

Cox Media GroupMay 21, 2026Federal Trade Commission

Penalty Amount

$930,000

Summary

The FTC alleged that Cox Media Group (CMG), MindSift LLC, and 1010 Digital Works LLC deceived customers by falsely claiming to offer an AI-powered 'Active Listening' service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. In reality, the service did not use voice data and consumers had not consented. The companies agreed to pay a total of $930,000 and are prohibited from making misrepresentations about their services, voice data collection, and consumer consent.

Remedy

CMG must pay $880,000, MindSift and 1010 Digital Works each pay $25,000, totaling $930,000 for consumer redress. All defendants are prohibited from misrepresenting the qualities or features of their advertising services, the collection and use of voice data, consumer consent, and geographic targeting capabilities.

Monetary PenaltyInjunctionCorrective Notice

Contract Impact

In-house legal teams should review vendor agreements with marketing and data broker partners to ensure that any claims about AI-powered services, voice data collection, or consumer consent are accurate and substantiated. Specifically, contracts should include representations and warranties that services do not rely on unauthorized data collection, that any claimed consumer consent is obtained through proper opt-in mechanisms (not merely terms of service acceptance), and that data sourcing (e.g., email lists) is transparent and compliant with privacy laws. Clauses related to data processing, consent, and audit rights should be strengthened to prevent deceptive marketing practices and to ensure vendors do not resell data without proper authorization.

Contract Search Terms

active listeningvoice dataopt-in consentterms of service consentdata brokeremail list resalegeographic targetingAI-powered marketingconsumer consent clausevoice data collection

Laws Cited

15 U.S.C. 45

Violation Types

Entity Details

Entity

Cox Media Group

Industry

Advertising

Official Sources

Source Evidence

Entity Name
"Cox Media Group (CMG)"
Fine Amount
"pay a total of $930,000"
Laws Cited
"Section 5 of 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"
Remedy Types
"CMG must pay $880,000 while both MindSift and 1010 Digital Works will each pay $25,000"

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