Company Fined for False Claims of Listening to Conversations

Company Fined for False Claims of Listening to Conversations 🚨

A media company and two of its marketing partners have been fined for selling a service which they claimed could listen in on people’s conversations through their phones. However, they did nothing of the sort! 😲

Between 2023 and 2024, Cox Media Group publicly promoted a service called “Active Listening” or “Voice Data,” claiming it used AI-powered voice-processing technology to capture conversations from smartphones, smart TVs, and other devices with embedded microphones. They told potential advertising clients that this system provided a tool to target, retarget, and retain customers.

This deceptive activity came to light when 404 Media published internal pitch decks from Cox that detailed the supposed “Active Listening” capabilities. After the revelations, Cox initially backpedaled and denied listening to conversations, but the marketing materials contradicted these denials. The FTC found that the “Active Listening” service was completely fabricated. The service did not listen to consumers’ conversations or use voice data at all, nor did it accurately place ads in customers’ desired geographic locations. Instead, Cox and its partners simply resold email lists obtained from other data brokers at a significant markup.

Furthermore, the companies falsely claimed that consumers had opted into voice data collection when they had not. The Federal Trade Commission (FTC) subsequently fined the companies a total of $930,000 for falsely claiming they could spy on consumers. Cox Media Group must pay $880,000, while MindSift and 1010 Digital Works will each pay $25,000. These settlement funds will be used to provide refunds to Cox Media Group customers who were deceived by these false claims. 💰

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