Judge Cautions That FTC Investigation of Media Matters Should Alarm All Americans

A federal judge has granted a preliminary injunction that stops the Federal Trade Commission’s investigation into the left-leaning advocacy group Media Matters.

In 2023, Media Matters published findings showing that advertisements from prominent brands had appeared alongside antisemitic and other objectionable content on X, the platform owned by Elon Musk. As a result, major advertisers started to pull their campaigns from the platform, leading X to sue Media Matters for damages and claim that the organization had initiated a “systematic illegal boycott.”

After Donald Trump took office again in January, the FTC initiated an inquiry to explore whether Media Matters had unlawfully colluded with advertisers.

However, on Friday, Judge Sparkle L. Sooknanan ruled in favor of Media Matters, blocking the FTC’s inquiry. In her decision, Sooknanan — a district court judge for the District of Columbia appointed by Joe Biden — asserted that the article by Media Matters represented “quintessential First Amendment activity” and that the FTC’s “overreaching” inquiries appeared to be a “retaliatory act.”

“It is troubling for all Americans when the Government retaliates against individuals or organizations for engaging in constitutionally protected public discourse,” she stated. “This concern is heightened when the Government acts against those involved in newsgathering and reporting.”

Sooknanan highlighted that before his appointment as FTC chair, Andrew Ferguson appeared on Steve Bannon’s podcast inviting investigations into progressive organizations that criticize online misinformation, and that he subsequently “appointed several senior staffers at the FTC who had made public statements concerning Media Matters.”

The FTC has not yet replied to a TechCrunch inquiry regarding possible plans to appeal.

Regardless of the eventual legal outcome, X’s lawsuits have already had a significant impact on the affected organizations, leading to Media Matters downsizing (one of the laid-off researchers is now running for Congress), while the World Federation of Advertisers halted its brand safety initiative amid reports of financial difficulties.

Sooknanan noted that the FTC inquiry has achieved its “intended effect,” causing Media Matters to opt “not to pursue certain stories regarding the FTC, Chairman Ferguson, and Mr. Musk.”