Cox Media Group will pay $880,000 to settle Federal Trade Commission allegations that it falsely claimed to offer an AI-powered "Active Listening" service targeting ads based on device conversations. The company's marketing claimed "Your devices are listening to you," causing widespread consumer panic about privacy invasion.

FTC investigators found CMG did not actually use voice data. Instead, CMG simply resold email lists from other data brokers at a markup. Two marketing firms that worked with CMG, 1010 Digital Works LLC and MindSift LLC, also settled for $25,000 each after the deceptive practices came to light.

The settlement requires CMG to provide refunds to affected customers. The case highlights the persistent problem of companies making exaggerated claims about data collection capabilities. Privacy advocates welcomed the enforcement action as a necessary check on deceptive marketing practices targeting consumer concerns about surveillance.