FTC Investigation into Media Matters Raises Concerns - Judge Warns

Federal Judge Blocks FTC Investigation into Media Matters

A preliminary injunction has been issued by a federal judge, halting the Federal Trade Commission’s (FTC) inquiry into the activities of Media Matters, a left-leaning advocacy organization.

Background of the Dispute

In 2023, Media Matters released findings detailing the placement of advertisements from prominent companies alongside antisemitic and other objectionable material on X, the platform owned by Elon Musk. Following this report, a number of major advertisers reduced their spending on the platform.

Subsequently, X initiated legal action against Media Matters. Additionally, lawsuits were filed against advertisers and advertising industry groups, alleging a “systematic illegal boycott.”

The FTC commenced its own investigation into Media Matters earlier this year, after Donald Trump, previously an ally of Musk, began a new term in office. The investigation centered on potential illegal collusion between Media Matters and advertisers.

Judge Sooknanan’s Ruling

On Friday, Judge Sparkle L. Sooknanan ruled in favor of Media Matters, effectively blocking the FTC’s investigation. Her decision stated that the Media Matters report constituted “quintessential First Amendment activity.”

Judge Sooknanan, appointed to the District of Columbia court by Joe Biden, characterized the FTC’s investigative demands as overly broad and appearing to be “a retaliatory act.”

She emphasized the importance of protecting constitutionally protected public debate, stating, “It should alarm all Americans when the Government retaliates against individuals or organizations for engaging in constitutionally protected public debate.”

Concerns Regarding FTC Chair’s Prior Statements

The judge also highlighted that Andrew Ferguson, the current FTC chair, had previously voiced support for investigating progressive groups critical of online disinformation during an appearance on Steve Bannon’s podcast.

Furthermore, Sooknanan noted that Ferguson had appointed several senior FTC staff members who had previously made public statements concerning Media Matters.

FTC Response and Impact of Lawsuits

The FTC has not yet responded to inquiries regarding a potential appeal of the ruling.

X’s legal challenges have already demonstrably impacted the organizations targeted. Media Matters has reduced its workforce – one former researcher is now a congressional candidate – and the World Federation of Advertisers has discontinued its brand safety program, citing financial strain.

Chilling Effect on Reporting

Judge Sooknanan observed that the FTC investigation has had a “intended effect,” leading Media Matters to reconsider pursuing certain investigative stories related to the FTC, Chairman Ferguson, and Elon Musk.