The Federal Trade Commission finalized orders Aug. 27 requiring Cox Media Group and two other firms to pay a combined $930,000. The companies allegedly marketed a deceptive “active listening” artificial intelligence advertising service that purportedly used device microphones to target ads, the FTC said.
The companies allegedly claimed their AI technology could listen to consumers’ ambient conversations through smartphones and other devices to deliver targeted advertisements, the FTC said. The settlement marks one of the first federal enforcement actions specifically targeting AI-driven ambient listening advertising products.
The FTC found that the marketing claims were deceptive, and the finalized orders prohibit the companies from making future claims about AI surveillance-based advertising capabilities, the agency said.
The case strikes at a growing consumer fear. Surveys consistently show that Americans worry their devices are listening to their conversations, and the marketing of products claiming to exploit that capability raises significant privacy and consumer protection concerns.
For the AI and digital advertising industries, the settlement establishes a regulatory precedent. The FTC signaled that companies making claims about AI capabilities in advertising must be able to substantiate those claims or face enforcement action.
The orders require both financial penalties and behavioral changes. In addition to the $930,000 payment, the companies are barred from misrepresenting the capabilities of any AI-powered surveillance or listening technology in future marketing.
Cox Media Group is one of the largest media companies in the United States, operating television stations, radio stations, and digital media properties across multiple markets.