FTC Settles with Companies Misleading Businesses About Audio-Based Ad Targeting

The Federal Trade Commission (FTC) announced that Cox Media Group, MindSift LLC, and 1010 Digital Works will collectively pay nearly $1 million to settle claims that they misled clients about a marketing service called Active Listening. The companies falsely claimed the service could capture audio from smartphones, smart TVs, and other devices to target ads using AI and consumer voice data. According to the FTC, these claims were untrue; the service only involved reselling consumer email lists at a markup. Cox Media Group agreed to pay $880,000, while MindSift and 1010 Digital Works each settled for $25,000. The FTC emphasized that businesses that purchased the service were misled to believe the audio-based targeting worked and that consumer consent had been obtained. The settlements include agreements not to make further misrepresentations about marketing services or audio data collection. FTC Director Christopher Mufarrige stressed the importance of honesty in business, noting that while using audio to target ads is not illegal per se, claiming it works when it doesn’t is deceptive. This case highlights ongoing concerns around privacy, digital marketing ethics, and the importance of transparent business practices.