FTC Finalizes Case Against Cox, Wins $930,000 Settlement
Summary
The Federal Trade Commission (FTC) has finalized a case against the Cox Media Group and two smaller firms, MindSift LLC and 1010 Digital Advertising Works LLC, alleging that they engaged in 'AI washing.' The FTC claimed that Cox offered an 'active listening' ad product that purported to analyze conversations accessed by smart devices to serve hyper-local ads. However, the FTC charged that this product did not actually exist. As part of the finalized consent order, Cox Media Group has agreed to pay $880,000, while MindSift and Digital Works will each pay $25,000. Additionally, the companies are subject to a 20-year compliance term during which their advertising claims will be monitored.
(Source:Mediapost Publications)