You’re sitting with your friend in a coffee shop and casually mention that you’re thinking of buying a watch. After sharing a few life updates and finishing your coffee, the two of you go your separate ways. Later, when you check your phone, you’re suddenly bombarded with ads for watches. Now you’re wondering if your phone is really listening to your conversations. You do some research online, but all the social media companies flatly deny it. Still, you’re suspicious, especially since it keeps happening. You’re unsure what to do, and it seems like no one is taking responsibility – until now. Meta, a marketing agency that works or has worked directly with companies like Microsoft, Google and Amazon, has now admitted that apps on your phone are actually accessing your microphone and listening to your everyday conversations. Here’s the full story in 5 points.

-Big tech companies are probably listening to you carefully

A recent report published by 404 Media reveals that advertising agency Cox Media Group uses what is known as active listening software, which is based on AI, to monitor and analyze conversations that take place near your phone. This technology captures real-time data from user discussions, essentially “eavesdropping” to understand consumer intentions. It combines voice data with behavioral data, allowing advertisers to create targeted ads for individuals who may be considering a purchase. This technology tracks user conversations, giving advertisers a powerful tool to predict consumer interests based on what is said near the device.

–Data collection and sources

According to a report presented to investors by Cox Media Group in an internal meeting – which was seen by 404 Media – active listening software collects data from more than 470 different sources. These include both behavioral patterns and voice data, offering a comprehensive picture of consumer interests and intentions. This technology collects the “data trail” left by users’ interactions and actions online, providing valuable information to marketers. This capability raises concerns about privacy and the extent of use of personal information without users’ explicit consent.

–Report highlights questionable practices

This isn’t the first time active listening software has come under scrutiny. Investigation platform 404 Media has exposed such invasive technology several times in the past year. We’ve covered a similar report before. In December, Cox Media Group released a paper detailing how businesses could use voice data to enhance their marketing strategies. The paper explained that the marketing agency’s technology – “active listening” – uses AI to capture and analyze conversations taking place near smart devices such as phones and TVs. By listening to discussions about individual needs or interests, this technology helps businesses target potential customers based on real-time conversations. CMG acknowledged the invasiveness of this approach but emphasized its effectiveness for marketers. Once relevant conversations are identified, targeted ads are served up via platforms such as streaming services, YouTube and search engines. The latest report has now uncovered exactly that.

–Responses from big tech companies

Following the recent exposure of Cox Media Group’s active listening practices, major tech companies such as Meta and Amazon have responded. Meta, concerned about its potential involvement, launched a review of the agency’s terms of service to investigate whether user data was being collected without proper consent. Amazon, on the other hand, distanced itself from the controversy, denying any connection to the agency and warning that it would take legal action if its partners were found to be violating its data privacy standards. Both companies are working to address the potential misuse of consumer data.

–Hidden consent in app agreements

Cox Media Group has defended its use of active listening technology, claiming that users agree to these practices whenever they download or update an app. Hidden in the fine print of terms and conditions, active listening is often included without the user’s explicit knowledge. Since most users do not read these agreements thoroughly, the software is legally allowed to collect data, even though many people are not aware that they have consented to such invasive tracking. This practice continues to raise questions about transparency and ethical business practices in data collection.