The US Federal Trade Commission has fined media conglomerate Cox Media and two smaller marketing firms a total of $930,000 (£692,500) as part of a settlement over deceptive claims of an advertising service that used AI to listen in on conversations people had near their devices.
Cox and the two smaller firms marketed a service called “Active Listening” to small businesses that they claimed could listen in to detect pertinent conversations from smart devices to target ads to consumers within a desired geographic region, according to the FTC.
The companies said consumers had opted into the service, which they had not.
‘Creepy’
“Creepy? Sure. Great for marketing? Definitely,” Cox told prospective clients on its website, the FTC said.
