FTC Settles With Cox Media Group and Two Others Who Lied About Using Device Microphones to Collect Ad Targeting Data

The U.S. Federal Trade Commission: The Federal Trade Commission will require Cox Media Group (CMG) and two smaller marketing firms to pay a total of $930,000 to settle allegations they deceived customers by falsely claiming to offer an AI-powered service that could target localized ads based on conversations captured from consumers’ smart devices and that consumers had opted into such targeting. Congratulations to Joseph Cox of 404 Media who broke this story in December 2023 and a related story about MindSift and 1010 Digital, the “smaller marketing firms” who settled with the FTC. According to the FTC’s complaint (PDF), Cox Media Group continued its fraudulent marketing through mid-2024, around the time the pitch deck was leaked to Cox. All three of these companies helped to feed the conspiracy theory that apps use device microphones to collect data for ad targeting. For what it is worth, Cox Media Group told Reuters it “relied on marketing materials provided by a third-party vendor…