Judge halts FTC probe into Media Matters, citing threat to free debate

A federal judge has issued a preliminary injunction pausing the Federal Trade Commission’s investigation into Media Matters, criticizing the agency’s approach as overreaching and potentially retaliatory toward protected speech.

The dispute traces back to 2023, when Media Matters published research indicating that ads from major brands appeared next to antisemitic and other offensive posts on X (formerly Twitter). After many advertisers reduced their spending, X launched litigation against Media Matters and later widened its lawsuits to include brands and industry groups, alleging a coordinated and unlawful boycott.

Following the change in administration in January, the FTC opened a probe into whether Media Matters illegally coordinated with advertisers. On Friday, the court temporarily blocked that probe.

U.S. District Judge Sparkle L. Sooknanan, serving in Washington, D.C., concluded that Media Matters’ reporting constituted core First Amendment activity and that the FTC’s expansive demands appeared punitive rather than properly tailored.

Government retaliation for engaging in constitutionally protected public debate should concern everyone — and even more so when aimed at newsgathering and reporting.

The opinion also pointed to past public remarks by the current FTC chair, Andrew Ferguson, prior to his appointment, including calls to scrutinize progressive organizations focused on online misinformation. It further noted subsequent appointments of senior staff who had previously made public comments about Media Matters.

The FTC has not yet indicated whether it plans to appeal the ruling.

Meanwhile, the ripple effects from X’s lawsuits have been significant. Media Matters has reduced headcount — with one former researcher now mounting a congressional bid — and the World Federation of Advertisers shuttered a brand-safety initiative amid reports of financial strain.

The court added that the FTC’s actions have had a chilling effect, prompting Media Matters to refrain from pursuing certain planned stories related to the FTC, Chair Ferguson, and Elon Musk.

For now, the injunction freezes the investigation while the case proceeds, sharpening a broader debate over when government inquiries cross the line into retaliation and how far First Amendment protections extend across advertising, content moderation, and social platforms.