# UNITED STATES OF AMERICA

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URL: https://www.frixlaw.com/law-library/documents/agency%3Aftc%3Aeec0f2a912a276db

## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

242-3029
UNITED STATES OF AMERICA
BEFORE THE FEDERAL TRADE COMMISSION
COMMISSIONERS:

Andrew N. Ferguson, Chairman
Mark R. Meador

________________________________________________
In the Matter of
DECISION AND ORDER
CMG MEDIA CORPORATION.
DOCKET NO. C-4838
________________________________________________
DECISION
The Federal Trade Commission (“Commission”) initiated an investigation of certain acts and
practices of the Respondent named in the caption. The Commission’s Bureau of Consumer
Protection (“BCP”) prepared and furnished to Respondent a draft Complaint. BCP proposed to
present the draft Complaint to the Commission for its consideration. If issued by the
Commission, the draft Complaint would charge Respondent with violations of the Federal Trade
Commission Act.
Respondent and BCP thereafter executed an Agreement Containing Consent Order (“Consent
Agreement”). The Consent Agreement includes: 1) statements by Respondent that it neither
admits nor denies any of the allegations in the Complaint, except as specifically stated in this
Decision and Order, and that only for purposes of this action, it admits the facts necessary to
establish jurisdiction; and 2) waivers and other provisions as required by the Commission’s
Rules.
The Commission considered the matter and determined that it had reason to believe that
Respondent has violated the Federal Trade Commission Act, and that a Complaint should issue
stating its charges in that respect. The Commission accepted the executed Consent Agreement
and placed it on the public record for a period of 30 days for the receipt and consideration of
public comments. The Commission duly considered any comments received from interested
persons pursuant to Section 2.34 of its Rules, 16 C.F.R. § 2.34. Now, in further conformity with
the procedure prescribed in Rule 2.34, the Commission issues its Complaint, makes the
following Findings, and issues the following Order:

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Findings
1. Respondent is CMG Media Corporation d/b/a Cox Media Group, a Delaware corporation
with its principal office or place of business at 1601 W. Peachtree Street NE, Atlanta, GA,
30309.
2. The Commission has jurisdiction over the subject matter of this proceeding and over
Respondent, and the proceeding is in the public interest.
ORDER
Definitions
For the purposes of this Order, the following definition applies:
1. “Voice Data” means any full or partial audio file of an individual’s voice, voice
communications, or audio communications, as well as any transcripts of such audio file.
Provisions
I.

Prohibition Against Misrepresentations Regarding Voice Data and Advertising
and Marketing Services

IT IS ORDERED that Respondent, and Respondent’s officers, agents, employees, and
attorneys and all other persons in active concert or participation with any of them, who receive
actual notice of this Order, whether acting directly or indirectly, in connection with advertising,
promotion, offering for sale, sale or distribution of advertising or marketing services offered by
Respondent, or any business Respondent controls, must not make any misrepresentation,
expressly or by implication related to:
A. The qualities or features of its advertising or marketing services;
B. The collection and use of Voice Data;
C. Consumers’ consent to the collection, use, or disclosure of Voice Data; or
D. The geographic targeting capabilities of its advertising or marketing services.
II.

Monetary Relief

IT IS FURTHER ORDERED that:
A. Respondent must pay to the Commission $880,000, which Respondent stipulates its
undersigned counsel holds in escrow for no purpose other than payment to the
Commission.
B. Such payment must be made within 8 days of the effective date of this Order by
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electronic fund transfer in accordance with instructions provided by a representative of
the Commission.
III.

Additional Monetary Provisions

IT IS FURTHER ORDERED that:
A. Respondent relinquishes dominion and all legal and equitable right, title, and interest in
all assets transferred pursuant to this Order and may not seek the return of any assets.
B. The facts alleged in the Complaint will be taken as true, without further proof, in any
subsequent civil litigation by or on behalf of the Commission to enforce its rights to any
payment pursuant to this Order, such as a nondischargeability complaint in any
bankruptcy case.
C. The facts alleged in the Complaint establish all elements necessary to sustain an action by
or on behalf of the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy
Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral estoppel effect for
such purposes.
D. All money paid to the Commission pursuant to this Order may be deposited into a fund
administered by the Commission or its designee to be used for relief, including consumer
redress and any attendant expenses for the administration of any redress fund. If a
representative of the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed, the Commission may
apply any remaining money for such other relief (including consumer information
remedies) as it determines to be reasonably related to Respondent’s practices alleged in
the Complaint. Any money not used is to be deposited to the U.S. Treasury. Respondent
has no right to challenge any activities pursuant to this Provision.
E. In the event of default on any obligation to make payment under this Order, interest,
computed as if pursuant to 28 U.S.C. § 1961(a), shall accrue from the date of default to
the date of payment. In the event such default continues for 10 days beyond the d ate that
payment is due, the entire amount will immediately become due and payable.
F. Each day of nonpayment is a violation through continuing failure to obey or neglect to
obey a final order of the Commission and thus will be deemed a separate offense and
violation for which a civil penalty shall accrue.
G. Respondent acknowledges that its Taxpayer Identification Number (Social Security or
Employer Identification Number), which Respondent has previously submitted to the
Commission, may be used for collecting and reporting on any delinquent amount arising
out of this Order, in accordance with 31 U.S.C. § 7701.

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IV.

Customer Information

IT IS FURTHER ORDERED that Respondent must directly or indirectly provide sufficient
customer information to enable the Commission to efficiently administer consumer redress to all
purchasers of the advertising and marketing services subject to the misrepresentations identified
in the Complaint. Respondent represents that it has provided this redress information to the
Commission. If a representative of the Commission requests in writing any information related to
redress, Respondent must provide it, in the form prescribed by the Commission representative,
within 14 days.
V.

Acknowledgments of the Order

IT IS FURTHER ORDERED that Respondent obtains acknowledgments of receipt of this
Order:
A. Respondent, within 10 days after the effective date of this Order, must submit to the
Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.
B. For 20 years after the issuance date of this Order, Respondent for any business that such
Respondent is the majority owner or controls directly or indirectly must deliver a copy of
this Order to: (1) all principals, officers, directors, and LLC managers and members; (2)
all employees having managerial responsibilities for conduct related to the subject matter
of the Order and all agents and representatives who participate in conduct related to the
subject matter of the Order; and (3) any business entity resulting from any change in
structure as set forth in the Provision titled Compliance Reports and Notices. Delivery
must occur within 10 days after the effective date of this Order for current personnel. For
all others, delivery must occur before they assume their responsibilities.
C. From each individual or entity to which Respondent delivered a copy of this Order,
Respondent must obtain, within 30 days, a signed and dated acknowledgment of receipt
of this Order.
VI.

Compliance Reports and Notices

IT IS FURTHER ORDERED that Respondent makes timely submissions to the
Commission:
A. One year after the issuance date of this Order, Respondent must submit a compliance
report, sworn under penalty of perjury, in which Respondent must: (a) identify the
primary physical, postal, and email address and telephone number, as designated points
of contact, which representatives of the Commission, may use to communicate with
Respondent; (b) identify all of Respondent’s businesses by all of their names, telephone
numbers, and physical, postal, email, and Internet addresses; (c) describe the activities of
each business, including the goods and services offered, the means of advertising,
marketing, and sales; (d) describe in detail whether and how Respondent is in compliance
with each provision of this Order, including a discussion of all of the changes Respondent
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made to comply with the Order; and (e) provide a copy of each Acknowledgment of the
Order obtained pursuant to this Order, unless previously submitted to the Commission.
B. Respondent must submit a compliance notice, sworn under penalty of perjury, within 14
days of any change in the following: (a) any designated point of contact; or (b) the
structure of any entity that Respondent has any ownership interest in or controls directly
or indirectly that may affect compliance obligations arising under this Order, including:
creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate
that engages in any acts or practices subject to this Order.
C. Respondent must submit notice of the filing of any bankruptcy petition, insolvency
proceeding, or similar proceeding by or against Respondent within 14 days of its filing.
D. Any submission to the Commission required by this Order to be sworn under penalty of
perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by
concluding: “I declare under penalty of perjury under the laws of the United States of
America that the foregoing is true and correct. Executed on: _____” and supplying the
date, signatory’s full name, title (if applicable), and signature.
D. Unless otherwise directed by a Commission representative in writing, all submissions to
the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by
overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement,
Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue
NW, Washington, DC 20580. The subject line must begin: In re CMG Media
Corporation.
VII.

Recordkeeping

IT IS FURTHER ORDERED that Respondent must create certain records for 20 years after
the issuance date of the Order, and retain each such record for 5 years. Specifically, Respondent
must create and retain the following records:
A. Accounting records showing the revenues from all goods or services sold, the costs
incurred in generating those revenues, and resulting net profit or loss;
B. Personnel records showing, for each person providing services in relation to any aspect of
the Order, whether as an employee or otherwise, that person’s: name; addresses;
telephone numbers; job title or position; dates of service; and (if applicable) the reason
for termination;
C. Copies or records of all consumer complaints and refund requests, whether received
directly or indirectly, such as through a third party, and any response;
D. All records necessary to demonstrate full compliance with each provision of this Order,
including all submissions to the Commission;
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E. A copy of each unique advertisement or other marketing material making a representation
subject to this Order;
F. For 5 years from the date of the last dissemination of any representation covered by this
Order:
1. all materials that were relied upon in making the representation; and
2. all tests, studies, analysis, demonstrations, other research or other such evidence in
Respondent’s possession, custody, or control that contradicts, qualifies, or otherwise
calls into question the representation, or the basis relied upon for the representation,
including complaints and other communications with consumers or with
governmental or consumer protection organizations;
G. For 5 years from the date received, copies of all subpoenas and other communications
with law enforcement, if such communications relate to Respondent’s compliance with
this Order; and
H. For 5 years from the date created or received, all records, whether prepared by or on
behalf of Respondent, that demonstrate non-compliance or tend to show any lack of
compliance by Respondent with this Order.
VIII. Compliance Monitoring
IT IS FURTHER ORDERED that, for the purpose of monitoring Respondent’s compliance
with this Order:
A. Within 10 days of receipt of a written request from a representative of the Commission,
Respondent must: submit additional compliance reports or other requested information,
which must be sworn under penalty of perjury, and produce records for inspection and
copying.
B. For matters concerning this Order, representatives of the Commission are authorized to
communicate directly with Respondent. Respondent must permit representatives of the
Commission to interview anyone affiliated with Respondent who has agreed to such an
interview. The interviewee may have counsel present.
C. The Commission may use all other lawful means, including posing through its
representatives as consumers, suppliers, or other individuals or entities, to Respondent or
any individual or entity affiliated with Respondent, without the necessity of identification
or prior notice. Nothing in this Order limits the Commission’s lawful use of compulsory
process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.

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IX.

Order Effective Dates

IT IS FURTHER ORDERED that this Order is final and effective upon the date of its
publication on the Commission’s website (ftc.gov) as a final order. This Order will terminate 20
years from the date of its issuance (which date may be stated at the end of this Order, near the
Commission’s seal), or 20 years from the most recent date that the United States or the
Commission files a complaint (with or without an accompanying settlement) in federal court
alleging any violation of this Order, whichever comes later; provided, however, that the filing of
such a complaint will not affect the duration of:
A. Any Provision in this Order that terminates in less than 20 years;
B. This Order’s application to any Respondent that is not named as a defendant in such
complaint; and
C. This Order if such complaint is filed after the Order has terminated pursuant to this
Provision.
Provided, further, that if such complaint is dismissed or a federal court rules that Respondent did
not violate any provision of the Order, and the dismissal or ruling is either not appealed or
upheld on appeal, then the Order will terminate according to this Provision as though the
complaint had never been filed, except that the Order will not terminate between the date such
complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date
such dismissal or ruling is upheld on appeal.
By the Commission.
April J. Tabor
Secretary
SEAL:
ISSUED: August 26, 2026

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Aftc%3Aeec0f2a912a276db. Public record. Not legal advice.
