FTC Investigating Media Matters

The Federal Trade Commission (FTC) has issued a civil investigative demand to Media Matters, requesting records about the group’s communications with other media watchdogs. The inquiry focusess on whether Media Matters helped coordinate advertising boycotts targeting the social media platform X, owned by Elon Musk.

According to a document reviewed by Reuters, the FTC is seeking details about the Washington, DC-based nonprofit’s interactions with groups that monitor hate speech and misinformation in media.

The Global Alliance for Responsible Media (GARM) is one of those groups, an initiative of the World Federation of Advertisers. Both GARM and Media Matters are facing lawsuits from X.

Last year, X filed suit in Texas federal court, alleging that the World Federation of Advertisers and several major brands unlawfully worked together to pull ad dollars from the platform.

The companies accused of collusion have denied wrongdoing and have asked a judge to dismiss the case.

The FTC’s demand also calls for Media Matters to turn over all documents it produced or received in connection with the X lawsuit related to advertiser boycotts.

X, under Elon Musk’s ownership since 2022, has blamed Media Matters for defamation and financial harm. In 2023, X filed a separate lawsuit accusing the nonprofit of misrepresenting the platform by claiming that major brand advertisements were shown next to extremist content.

In response, Media Matters filed its own legal complaint, claiming X was using the courts to silence the organization for its reporting. "Media Matters has denied the allegations, and sued X, accusing it of abusive, costly and meritless lawsuits to punish the group for its reporting on advertising on X after Musk purchased the site."

The nonprofit said the legal fight has cost it millions of dollars.

While the FTC has not confirmed an investigation is underway, Chairman Andrew Ferguson previously pointed to possible concerns. "We must prosecute any unlawful collusion between online platforms, and confront advertiser boycotts which threaten competition among those platforms," he said in December while addressing another case.

The FTC’s demand, while serious, does not mean Media Matters has broken any laws. A civil investigative demand is a tool regulators use to gather information and does not automatically lead to enforcement action.