Cox Media Fined $930K for Falsely Claiming It Spied on Users Through Their Phones

The Federal Trade Commission has come down hard on Cox Media and two marketing firms for making outlandish claims about their advertising capabilities. On Thursday, the FTC announced that Cox, MindSift, and 1010 Digital Works would pay a total of $930,000 to settle allegations that they falsely claimed to be spying on people through their phones and smart devices to target ads. At the center of the controversy is Cox's now-defunct system called Voice Data, which the company touted to potential digital marketing clients back in 2023.

According to Cox, Voice Data allowed it to capture "every casual conversation" and use that information to target ads. However, the FTC alleged that these claims were baseless and that Cox had little evidence to support them. The settlement marks a significant rebuke to Cox and its marketing partners, who appear to have crossed a line by making such sweeping and unsubstantiated claims.

As Techdirt chronicled a couple of years ago, the company's boasts about Voice Data raised eyebrows among those familiar with the technology. The $930,000 penalty is a drop in the bucket for Cox Media, but the FTC's action serves as a warning to other companies tempted to make similar claims. The commission has made it clear that it will not tolerate deceptive advertising practices, particularly those that involve invading people's privacy.

In a statement, the FTC made clear that it was focused on protecting consumers from "deceptive" business practices. The commission's action against Cox and its partners sends a strong signal that it will continue to hold companies accountable for their advertising claims.