The U.S. Federal Trade Commission fined Cox Media Group and two other marketing firms for falsely claiming they could use AI and voice-processing technology to identify ad buyers based on casual conversations near smart devices in real time. Cox also falsely claimed that consumers opted in to voice data collection and use. The FTC cited marketing language that framed the approach as effective for marketing. Cox agreed to pay $880,000, while MindSift and 1010 Digital Works agreed to pay $25,000 each. Cox said it relied on marketing materials from a third-party vendor and stopped using the vendor’s product. MindSift and 1010 Digital Works did not immediately respond to requests for comment.
"The U.S. Federal Trade Commission fined Cox Media Group and two other companies for falsely claiming they could use AI to target ads based on conversations consumers had near their smart devices, the agency said on Thursday."
"The company falsely told potential advertisers in 2023 that it used artificial intelligence and voice-processing technology to "identify buyers based on casual conversations in real time," the FTC said. Cox also falsely told clients that consumers had opted in to voice data collection and use, the agency said."
""Creepy? Sure. Great for marketing? Definitely," the company told prospective clients on its website, according to the FTC. The company agreed to pay $880,000, while MindSift and 1010 Digital Works, two smaller marketing firms Cox worked with, each agreed to pay $25,000."
"Cox said it had relied on marketing materials provided by a third-party vendor about the vendor's product, which it has stopped using. MindSift and 1010 Digital Works did not immediately reply to requests for comment."
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