politics
FTC Settles Media Matters Investigation After Four Months
The Federal Trade Commission reached a settlement with Media Matters for America this week. The agency had sought communications records over the group's reports on advertising placement. Courts also ended parallel state investigations in Texas and Missouri.
May 17, 7:00 AM·1m read1 source
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The Federal Trade Commission settled its investigation into Media Matters for America this week. The agency had requested communications records after the group published reports on pro-Nazi content appearing next to advertisements on X.
Ferguson took leadership of the FTC four months earlier. He had previously stated at an antitrust conference that investigative tools remain expensive for targets even when the agency does not prevail in court. The FTC does not hold a mandate to examine First Amendment disputes.
State attorneys general in Texas and Missouri opened separate fraud inquiries into Media Matters after pressure from Stephen Miller.
Courts directed the FTC and the state attorneys general to end their actions. Media Matters stated the investigations caused donor losses, halted projects, and led to staff reductions. NewsGuard reported spending a significant share of its revenue on legal costs during similar FTC scrutiny.
The agency required companies in the Omnicom-IPG merger to stop using NewsGuard or comparable services as a condition of approval. X filed antitrust lawsuits against Media Matters and advertisers that reduced spending on the platform. A federal judge in Texas dismissed the advertiser portion of the suit earlier this year.
The Global Alliance for Responsible Media announced its dissolution in August 2024 after X initiated legal action. The group had advised advertisers on avoiding placement next to extremist content.
