Cox Media and two marketing firms were fined $930,000 by the FTC for falsely claiming they could spy on users through phone microphones to target ads; they actually resold email lists.
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<p class="has-text-align-none">An exceptionally weird controversy has come back to haunt Cox Media and a pair of marketing firms, which claimed they were secretly listening to users via phones and smart devices - despite little evidence they actually could. On Thursday <a href="https://www.ftc.gov/news-events/news/press-releases/2026/05/ftc-require-cox-media-group-two-other-firms-pay-nearly-1-million-settle-charges-they-deceived" data-type="link" data-id="https://www.ftc.gov/news-events/news/press-releases/2026/05/ftc-require-cox-media-group-two-other-firms-pay-nearly-1-million-settle-charges-they-deceived">the Federal Trade Commission announced</a> that Cox, MindSift, and 1010 Digital Works would pay a total of $930,000 to settle allegations that they were in fact lying about spying on people to target ads.</p>
<p class="has-text-align-none">As <a href="https://www.techdirt.com/2024/08/29/cox-caught-again-bragging-it-spies-on-users-with-embedded-device-microphones-to-sell-ads/" data-type="link" data-id="https://www.techdirt.com/2024/08/29/cox-caught-again-bragging-it-spies-on-users-with-embedded-device-microphones-to-sell-ads/">chronicled by <em>Techdirt</em></a> a couple of years ago, Cox publicly boasted about a system called Voice Data back in 2023, telling potential digital marketing clients they could ensure "every casual conversation be …</p>
<p><a href="https://www.theverge.com/policy/937027/cox-media-marketing-ai-powered-phone-spying-ads-ftc-fine">Read the full story at The Verge.</a></p>
# Cox Media fined after bragging it spied on users through their phones
Source: [https://www.theverge.com/policy/937027/cox-media-marketing-ai-powered-phone-spying-ads-ftc-fine](https://www.theverge.com/policy/937027/cox-media-marketing-ai-powered-phone-spying-ads-ftc-fine)
[](https://www.theverge.com/authors/adi-robertson)
Adi Robertson
is a senior tech and policy editor focused on online platforms and free expression\. Adi has covered virtual and augmented reality, the history of computing, and more for The Verge since 2011\.
An exceptionally weird controversy has come back to haunt Cox Media and a pair of marketing firms, which claimed they were secretly listening to users via phones and smart devices — despite little evidence they actually could\. On Thursday[the Federal Trade Commission announced](https://www.ftc.gov/news-events/news/press-releases/2026/05/ftc-require-cox-media-group-two-other-firms-pay-nearly-1-million-settle-charges-they-deceived)that Cox, MindSift, and 1010 Digital Works would pay a total of $930,000 to settle allegations that they were in fact lying about spying on people to target ads\.
As[chronicled by*Techdirt*](https://www.techdirt.com/2024/08/29/cox-caught-again-bragging-it-spies-on-users-with-embedded-device-microphones-to-sell-ads/)a couple of years ago, Cox publicly boasted about a system called Voice Data back in 2023, telling potential digital marketing clients they could ensure “every casual conversation between two consumers becomes a tool for you to target, retarget, and retain customers\.” It compared the tech to an episode of*Black Mirror*and described it as a real version of the[persistent, largely unsubstantiated rumor](https://www.theverge.com/news/789991/meta-instagram-microphone-listen-ads-targeting-adam-mosseri)that social media companies routinely listen to users through phone microphones\. Cox backpedaled and denied it was listening to conversations, but[*404 Media*published](https://www.404media.co/cmg-cox-media-actually-listening-to-phones-smartspeakers-for-ads-marketing/)multiple[internal pitch decks](https://www.404media.co/heres-the-pitch-deck-for-active-listening-ad-targeting/)making essentially the same highly dystopian claim\.
At the time, there were significant doubts this was actually happening, and the FTC complaints back this up\. “This service did not, in fact, listen in on consumers’ conversations or use voice data at all — nor did the service accurately place ads in customers’ desired locations,” it says in its press release\. “Instead, the service the companies provided consisted of reselling — at a significant markup — email lists obtained from other data brokers\.” The agency also says the companies lied about consumers having opted into this system — so even if they*could*spy on people, it alleges, they’d still have been breaking the law\.
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- Adi Robertson
The FTC fined Cox Media Group and two other companies nearly $1 million for falsely claiming their 'Active Listening' service could target ads based on audio recordings from smart devices, when it was actually just email list buying.
Cox Media Group (CMG) agreed to pay $880,000 to settle FTC allegations that it falsely advertised an AI-powered 'Active Listening' service that supposedly listened to consumers' devices for ad targeting, when in fact it did not use voice data at all.
The US Supreme Court ruled 8-1 against AT&T and Verizon, upholding FCC fines totaling $104 million for selling users' real-time location data without consent, finding that the FCC's penalty process did not violate carriers' Seventh Amendment right to a jury trial.
The FCC is fining eight suspected DJI front companies $25,000 each for failing to respond to inquiries about whether they are marketing radio equipment from banned foreign drone companies, escalating its crackdown on DJI's attempts to evade the US foreign drone ban.
The FTC fined Amazon $2.25 million for violating the Fair Credit Reporting Act by failing to provide identity theft victims with records of fraudulent transactions.