Cox Media fined after bragging it spied on users through their phones

The Federal Trade Commission announced a $930,000 settlement involving Cox Media, MindSift, and 1010 Digital Works. The allegations centered on claims that the companies were secretly listening to users through phones and smart devices to target advertisements. Cox had previously promoted a system called Voice Data, describing it as turning casual conversations into tools for ad targeting. The FTC stated the service did not listen to consumers’ conversations or use voice data, and it did not accurately place ads in intended locations. Instead, the FTC said the companies resold email lists purchased from other data brokers at a markup. The FTC also alleged the companies misrepresented consumer opt-in status.

"The Federal Trade Commission announced that Cox, MindSift, and 1010 Digital Works would pay a total of $930,000 to settle allegations that they were in fact lying about spying on people to target ads."

"“This service did not, in fact, listen in on consumers' conversations or use voice data at all - nor did the service accurately place ads in customers' desired locations,” it says in its press release. “Instead, the service the companies provided consisted of reselling - at a significant markup - email lists obtained from other data brokers.”"

"Cox publicly boasted about a system called Voice Data back in 2023, telling potential digital marketing clients they could ensure “every casual conversation between two consumers becomes a tool for you to target, retarget, and retain customers.” It compared the tech to an episode of Black Mirror and described it as a real version of the persistent, largely unsubstantiated rumor that social media companies routinely listen to users through phone microphones."

"The agency also says the companies lied about consumers having opted into this system - so even if they could spy on people, it alleges, they'd still have been breaking the law."

Read at The Verge