- The FTC announced proposed consent orders with CMG Media Corporation d/b/a Cox Media Group, MindSift LLC, and 1010 Digital Works LLC to resolve allegations that the companies deceptively marketed an “Active Listening” ad-targeting service to small businesses.
- According to the FTC, the companies claimed the AI-powered service could target localized ads based on consumers’ real-time conversations captured by smart devices, and that consumers had opted into the use of their voice data.
- The FTC alleges the service did not collect or use voice data at all, but instead resold consumer email lists from data brokers at a markup and did not reliably target consumers in customers’ requested geographic areas.
- Under the proposed orders, CMG will pay $880,000, and MindSift and 1010 Digital Works will each pay $25,000. The orders also bar misrepresentations about advertising services, voice data collection and use, consumer consent, and geographic targeting capabilities.