The Federal Trade Commission announced Thursday that it has imposed financial penalties on Cox Media Group and two partner companies for making deceptive statements about their ability to monitor consumer conversations through artificial intelligence technology.
According to the federal agency, Cox Media Group misled potential advertising clients in 2023 by claiming it could deploy AI and voice-processing systems to “identify buyers based on casual conversations in real time.”
The commission also found that Cox incorrectly informed clients that consumers had given permission for their voice data to be collected and utilized for marketing purposes.
In promotional materials on its website, the company described its alleged capabilities to potential customers by stating: “Creepy? Sure. Great for marketing? Definitely,” according to FTC findings.
As part of the settlement, Cox Media Group has agreed to pay $880,000 in penalties. Two smaller marketing companies that collaborated with Cox – MindSift and 1010 Digital Works – will each pay $25,000.
Cox Media Group operates radio and television broadcasting stations across multiple states and maintains a digital marketing division that specializes in streaming and online advertising.
In response to the allegations, Cox stated that it had depended on promotional materials supplied by an external vendor regarding that vendor’s technology, which the company has since discontinued using. Neither MindSift nor 1010 Digital Works provided immediate responses when contacted for comment.
