By Jody Godoy
May 21 (Reuters) – The U.S. Federal Trade Commission fined Cox Media Group and two other companies for falsely claiming they could use AI to target ads based on conversations consumers had near their smart devices, the agency said on Thursday.
Here are some details:
• The company falsely told potential advertisers in 2023 that it used artificial intelligence and voice-processing technology to “identify buyers based on casual conversations in real time,” the FTC said.
• Cox also falsely told clients that consumers had opted in to voice data collection and use, the agency said.
• “Creepy? Sure. Great for marketing? Definitely,” the company told prospective clients on its website, according to the FTC.
• The company agreed to pay $880,000, while MindSift and 1010 Digital Works, two smaller marketing firms Cox worked with, each agreed to pay $25,000.
• Cox operates radio and broadcast television stations in several states, and has a digital marketing arm focused on streaming and online ads.
• Cox said it had relied on marketing materials provided by a third-party vendor about the vendor’s product, which it has stopped using. MindSift and 1010 Digital Works did not immediately reply to requests for comment.
(Reporting by Jody Godoy in New York; Editing by Mark Porter)
