Home / Business and Economy / FTC Fines Marketers Nearly $1M for Fake Ad Claims
FTC Fines Marketers Nearly $1M for Fake Ad Claims
22 May
Summary
- Companies falsely claimed to target ads via smart device audio recordings.
- Settlement involves nearly $1 million in fines for deceptive practices.
- FTC alleges the service was merely email list buying, not audio analysis.
The Federal Trade Commission (FTC) announced on Thursday that Cox Media Group (CMG) and marketing companies MindSift LLC and 1010 Digital Works have agreed to pay nearly $1 million. This settlement resolves allegations that they deceived business customers by falsely claiming their 'Active Listening' service could target advertisements based on audio recordings from smart devices.
CMG stated it relied on third-party vendor materials and promptly withdrew them upon discovering the issue. The FTC's complaints detailed that CMG claimed to collect conversations from various smart devices, using AI to target ads and implying consumer consent for voice data usage. The FTC disputes these claims, asserting the service was actually consumer email list buying at inflated prices.
As part of their agreements, the companies have pledged not to misrepresent their marketing services or their practices regarding audio recording collection. CMG will pay $880,000, while MindSift and 1010 Digital Works will each pay $25,000. These funds will be distributed to businesses impacted by the deceptive practices.
