FTC settles with Cox Media Group over deceptive "active listening" AI ads
the ftc ordered cox media group and two other firms to pay nearly $1 million for falsely claiming an ai service listened to conversations via smart devices to target ads.
the ftc penalized cox media group and its partners nearly $1 million for alleging their software monitored consumers through smart device microphones to capture real-time intent for advertisers. an investigation revealed the technology never existed; the companies were reselling existing email data broker lists while charging a premium for the supposed ai capability. this confirms the marketing was fraudulent rather than a functional privacy violation, debunking fears that devices were actively eavesdropping. the case sets a precedent for regulating truth-in-advertising in the ai sector.