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"
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.