The FTC alleged Cox Media Group and two marketing firms deceived consumers with claims that their “Active Listening” AI-powered service used smart-device conversations to target ads and that users consented. The FTC alleged the service did not use voice data and instead involved reselling email lists from data brokers without proper consent.

The Federal Trade Commission (FTC) announced a settlement requiring Cox Media Group and two marketing firms to pay nearly $1 million after the agency alleged they misled consumers about how an “Active Listening” AI-powered marketing service worked. According to the FTC, the companies marketed the service as using consumers’ smart-device conversations to deliver targeted advertising, and they asserted that consumers opted into this voice-based targeting through app terms. The FTC alleged the service did not actually rely on consumers’ voice recordings. Instead, the FTC said the defendants used and resold email lists acquired from data brokers—without obtaining consumers’ genuine consent for the claimed use of sensitive audio/voice data. The case highlights a common consumer-protection theme: “AI” and “listening” labels can be used to create an impression of direct, invasive data collection, while actual practices may involve different data sources and consent mechanisms. The FTC’s order underscores that consent disclosures tied to app terms may not be enough where marketing claims are misleading and the underlying data practices differ from what consumers are led to believe.