FTC to Require Cox Media Group, Two Other Firms to Pay Nearly $1 Million to Settle Charges They Deceived Customers About “Active Listening” AI-Powered Marketing Service

The Federal Trade Commission (FTC) has demanded that three companies, including Cox Media Group, pay nearly $1 million to settle allegations of deceiving customers about a marketing service based on artificial intelligence. The service, called “active listening,” supposedly used smart devices to collect real-time conversation data and direct ads to consumers. However, the FTC found that the service did not use voice data or listen to conversations, but rather resold email lists obtained from other data providers at a much higher price.

The FTC also discovered that the companies misled customers by claiming that consumers had accepted the “active listening” service by agreeing to app terms of service. In reality, customers were not properly informed about the collection and use of their data, rendering their consent invalid. The resolution of this case is significant because it highlights the need for transparency and consent in the collection and use of personal data. Protecting consumer privacy is essential in the digital age, and companies must be honest and clear about how they collect and use their customers’ data. This is particularly relevant in the context of artificial intelligence and targeted marketing, where transparency and consent are crucial for maintaining consumer trust.

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