Penalty Amount
$930,000
The FTC alleged that Cox Media Group (CMG), MindSift LLC, and 1010 Digital Works LLC deceived customers by falsely claiming to offer an AI-powered 'Active Listening' service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. In reality, the service did not use voice data and consumers had not consented. The companies agreed to pay a total of $930,000 and are prohibited from making misrepresentations about their services, voice data collection, and consumer consent.
CMG must pay $880,000, MindSift and 1010 Digital Works each pay $25,000, totaling $930,000 for consumer redress. All defendants are prohibited from misrepresenting the qualities or features of their advertising services, the collection and use of voice data, consumer consent, and geographic targeting capabilities.
In-house legal teams should review vendor agreements with marketing and data broker partners to ensure that any claims about AI-powered services, voice data collection, or consumer consent are accurate and substantiated. Specifically, contracts should include representations and warranties that services do not rely on unauthorized data collection, that any claimed consumer consent is obtained through proper opt-in mechanisms (not merely terms of service acceptance), and that data sourcing (e.g., email lists) is transparent and compliant with privacy laws. Clauses related to data processing, consent, and audit rights should be strengthened to prevent deceptive marketing practices and to ensure vendors do not resell data without proper authorization.
Entity
Cox Media Group
Industry
AdvertisingOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/05/ftc-require-cox-media-group-two-other-firms-pay-nearly-1-million-settle-charges-they-deceived
CMGComplaintwithoutsignatures
https://www.ftc.gov/system/files/ftc_gov/pdf/CMGComplaintwithoutsignatures.pdf
Mindsift Complaint withoutsignatures
https://www.ftc.gov/system/files/ftc_gov/pdf/Mindsift-Complaint-withoutsignatures.pdf
1010digitalworksllccomplaintwithoutsignatures
https://www.ftc.gov/system/files/ftc_gov/pdf/1010digitalworksllccomplaintwithoutsignatures.pdf
CMGDecisionandOrderwithoutsignatures
https://www.ftc.gov/system/files/ftc_gov/pdf/CMGDecisionandOrderwithoutsignatures.pdf
Mindsift DecisionandOrder withoutsignatures
https://www.ftc.gov/system/files/ftc_gov/pdf/Mindsift-DecisionandOrder-withoutsignatures.pdf
1010digitalworksllcdecisionandorderwithoutsignatures
https://www.ftc.gov/system/files/ftc_gov/pdf/1010digitalworksllcdecisionandorderwithoutsignatures.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Cox Media Group (CMG)"
"pay a total of $930,000"
"Section 5 of the FTC Act"
"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"
"the marketing service wasn’t based on voice data and consumers hadn’t opted into this service"
"CMG must pay $880,000 while both MindSift and 1010 Digital Works will each pay $25,000"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.