US Federal Trade Commission (FTC) — CMG Media Corporation, MindSift LLC, 1010 Digital Works LLC

Decided by

Federal Trade Commission

Parties

Federal Trade Commission v. CMG Media Corporation, MindSift LLC, and 1010 Digital Works LLC

Decision date

May 21, 2026

Remedy

CMG Media Corporation must pay $880,000, while MindSift LLC and 1010 Digital Works LLC will each pay $25,000 to provide customer redress. All three companies are prohibited from misrepresenting their marketing features, consumer consent, voice data collection, and geographic targeting capabilities.

Amount

$930,000

Appeal

Appeal status not stated

Key holdings

1. The FTC alleged the defendants deceived customers by falsely claiming their AI marketing service targeted localized ads using voice conversations captured from smart devices.

   “falsely claiming to offer an AI-powered service that could target localized ads based on conversations captured from consumers’ smart devices” — paragraph 1

2. The marketing service did not use voice data or listen to conversations, but instead resold email lists from data brokers at a markup.

   “this service did not, in fact, listen in on consumers’ conversations or use voice data at all” — paragraph 5

3. Accepting mandatory terms of service when downloading apps does not constitute valid opt-in consent for collecting and using voice data from consumers' homes.

   “Clicking through mandatory terms of service does not constitute “opt-in consent” for such an invasive service or for use of consumers’ voice data from inside their homes.” — paragraph 6

4. Under the proposed settlement orders, the companies must pay $930,000 in total redress and accept injunctions against deceptive marketing claims.

   “CMG must pay $880,000 while both MindSift and 1010 Digital Works will each pay $25,000, which will be used to provide redress” — paragraph 8

In plain English

The Federal Trade Commission took action against CMG Media Corporation, doing business as Cox Media Group, along with two marketing partners, MindSift LLC and 1010 Digital Works LLC. The FTC alleged that the three companies falsely marketed an artificial intelligence service named Active Listening to small businesses. The companies claimed this service used specialized algorithms to listen to conversations captured by consumers smart devices in real time and deliver targeted local advertisements. They also falsely claimed that consumers had opted in to this monitoring. In reality, the service did not use voice data or listen to consumer conversations at all. Instead, the companies simply resold email lists obtained from third-party data brokers at marked-up prices. Furthermore, the companies falsely asserted that consumers consented to the service by accepting standard app terms, which the FTC clarified does not constitute valid opt-in consent for home voice monitoring. To settle the charges, CMG agreed to pay $880,000, while MindSift LLC and 1010 Digital Works LLC will each pay $25,000, creating a combined $930,000 fund for customer redress. The Commission voted 2-0 to accept the proposed settlement agreements, which also prohibit the companies from misrepresenting marketing capabilities, consumer consent, or geographic targeting features. This enforcement action underlines that businesses cannot lie about artificial intelligence capabilities or falsely claim consumers consented to invasive device tracking.