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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 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 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 that social media companies routinely listen to users through phone microphones. Cox backpedaled and denied it was listening to conversations, but 404 Media published multiple internal pitch decks 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.Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Adi RobertsonCloseAdi RobertsonSenior Editor, Tech & PolicyPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Adi RobertsonNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsPolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyPrivacyClosePrivacyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PrivacyTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechMost PopularMost PopularFerrari reveals its first EV, with design help from Jony IveSennheiser’s new Momentum 5 headphones have upgraded ANC and a replaceable batteryGoogle’s new anything-to-anything AI model is wildTHE PEOPLE DO NOT YEARN FOR AUTOMATIONVideoCox Media fined after bragging it spied on users through their phonesThe Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. 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Cox Media, MindSift, and 1010 Digital Works were fined $930,000 by the Federal Trade Commission following allegations that they misrepresented their activities regarding user surveillance for advertising purposes. This action stems from claims made by the companies that they were in fact spying on individuals through their phones and smart devices to target advertisements. The controversy originated when Cox publicly promoted a system termed Voice Data in 2023, asserting that it could transform "every casual conversation between two consumers" into a tool for targeted marketing, retargeting, and customer retention. This claim drew attention because it mirrored unsubstantiated rumors about social media companies monitoring user conversations via phone microphones.

While Cox subsequently denied listening to conversations, the Federal Trade Commission found that the companies engaged in deceptive practices. The agency determined that the service did not actually monitor consumers' conversations or utilize voice data, nor did it accurately position advertisements in the desired locations. Instead, the service operated by reselling email lists acquired from other data brokers, adding a significant markup to the cost. Furthermore, the FTC alleged that the companies also misled consumers by falsely claiming that users had opted into this surveillance system, which constitutes a violation of law regardless of the actual capability of spying. The finding indicates a significant issue concerning transparency, data privacy, and the ethical marketing practices surrounding the use of personal data in the digital economy.