FTC Finalizes Orders Against CMG
The Federal Trade Commission reveals it has issued finalized orders requiring Cox Media Group and New Hampshire-based MindSift LLC and Wisconsin-based 1010 Digital Works LLC to pay a total of $930,000 to settle allegations they deceived customers 
by falsely claiming to offer an AI-powered service that could target localized ads based on conversations captured from consumers’ smart devices and that consumers had opted into such targeting. The FTC had alleged that the companies “deceived customers by claiming they used a special algorithm to listen in on and detect pertinent conversations from smart devices in order to target ads to consumers within a specific geographic region. Contrary to these companies’ claims, however, the marketing service wasn’t based on voice data, and consumers hadn’t opted into this service. If the service had functioned as advertised, this collection and use of consumers’ voice data without adequate consent would itself violate the FTC Act.”
agreement to eliminate the burden and expense of further litigation.” It also says, “The plaintiffs believe that all claims ‘have merit,’ but they decided to settle due to ‘the inherent risks, difficulties and delays in complex ERISA litigation such as this.’” The settlement requires court approval. The Pensions & Investments report says, “The plaintiffs sued in December 2022, alleging that the defendants ‘did not try to reduce the plan’s expenses or exercise appropriate judgment to scrutinize each investment option that was offered in the plan to ensure it was prudent.’…The Cumulus Media 401(k) Plan, Atlanta, had $260 million in assets as of Dec. 31, 2021, according to the company’s most recent Form 5500 filing.”