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Marketer that claimed it could tap devices for ad targeting will pay $880K settlement

Marketing firm Cox Media Group (CMG) has agreed to pay $880,000 to settle FTC allegations that it falsely claimed to offer an AI-powered ad targeting service that could listen to consumers' conversations through smart devices. The company had advertised a service called 'Active Listening' that supposedly used voice data for targeted advertising, though experts questioned the technical feasibility of such claims. The settlement requires CMG to pay affected customers and prohibits the company from making similar unsubstantiated claims in the future.

Background

There have been long-standing concerns and conspiracy theories about whether smartphones and smart devices are secretly listening to users for advertising purposes, though concrete evidence of such practices has been scarce. The FTC has been increasingly active in regulating tech companies' data collection and advertising practices.

Source
Ars Technica
Published
May 23, 2026 at 01:48 AM
Score
6.0 / 10