Analysis of Proposed Consent Order to Aid Public Comment In the Matter of CMG Media

Analysis of Proposed Consent Order to Aid Public Comment In the Matter of CMG Media

Corp., File No. 242-3029

The Federal Trade Commission (“Commission”) has accepted, subject to final approval,

an agreement containing a consent order from CMG Media Corporation d/b/a Cox Media Group

(“CMG” or “Respondent”).

The proposed consent order (“Proposed Order”) has been placed on the public record for

30 days for receipt of public comments by interested persons. Comments received during this

period will become part of the public record. After 30 days, the Commission will again review

the agreement, along with the comments received, and will decide whether it should make final

the Proposed Order or withdraw from the agreement and take appropriate action.

Respondent CMG is a Delaware corporation with its principal place of business in

Atlanta, Georgia. Respondent CMG owns local television and radio stations across the country

and sells marketing and advertising services to small- and medium-sized businesses in its

television and radio markets.

CMG, in conjunction with MindSift LLC, offered a marketing service that purported to

allow CMG’s customers to target ads to consumers within particular geographic service areas

based on conversations consumers had near their smart devices.

The Commission’s proposed one-count complaint alleges that Respondent CMG

represented that its marketing service collected and used voice data from smart devices for

marketing purposes, obtained consent for the collection and use of voice data from consumers,

and created lists of consumers in particular geographic areas. The proposed complaint alleges

that these claims are false or misleading, in violation of Section 5 of the FTC Act, because the

marketing service did not collect or use voice data, did not obtain consent from consumers for

the collection and use of their voice data, and did not create lists of consumers in particular

geographic areas.

The Proposed Order contains injunctive relief designed to prevent Respondent CMG

from engaging in the same or similar acts or practices in the future.

Provision I prohibits Respondent CMG from making any misrepresentation about: (1)

the qualities or features of its advertising or marketing services; (2) the collection and use of

Voice Data; consumers’ consent to the collection, use, or disclosure of Voice Data; or the

geographic targeting capabilities of its advertising or marketing services. (Voice Data is defined

in the Proposed Order.)

Provision II requires Respondent CMG to pay to the Commission $880,000 in monetary

relief.

Provision III describes the procedures and legal rights related to that payment.

Provision IV requires Respondent CMG to provide customer information to enable the

Commission to efficiently administer redress to those affected by the deception.

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Provision V requires Respondent CMG to obtain and submit acknowledgments of receipt

of the Order.

Provisions VI-VIII are reporting and compliance provisions, which include

recordkeeping requirements and provisions requiring Respondent CMG to provide information

or documents necessary for the Commission to monitor compliance.

Provision IX states that the Proposed Order will remain in effect for 20 years, with

certain exceptions.

The purpose of this analysis is to facilitate public comment on the Proposed Order, and it

is not intended to constitute an official interpretation of the complaint or Proposed Order, or to

modify the Proposed Order’s terms in any way.

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