Three companies, including Cox Media Group, are facing scrutiny from the Federal Trade Commission for allegedly deceiving consumers about their advertising services. The FTC announced on Thursday that these firms will collectively pay nearly $1 million to settle claims regarding their misleading AI-driven ad service, known as "Active Listening." This service purportedly targeted ads based on conversations picked up from smart devices.
According to the FTC, the service did not actually capture any conversations. Instead, it involved reselling email lists from data brokers at inflated prices. The agency highlighted that consumers were misled into believing they had consented to the service simply by accepting terms of use for various apps, which the FTC deemed inadequate for such invasive practices.
Cox Media Group had previously promoted the service with statements suggesting that smart devices were listening to users, leveraging conspiracy theories to attract attention. However, the FTC clarified that genuine consent was not obtained from consumers, as the service did not function as advertised.