The FTC’s new lawsuit also complained that Media Matters for America pressured advertisers to remove ads from Fox News and X. Media Matters is a nonprofit journalism organization that drew Musk’s wrath in 2023 when it published an article showing that X placed ads next to pro-Nazi posts.
Trump FTC stamps out brand-safety initiatives
Musk lost a lawsuit against advertisers last month when a judge decided that the X boycott was legal. In another case, a judge blocked an FTC investigation into Media Matters, finding that the FTC retaliated against Media Matters after it “engaged in quintessential First Amendment activity when it published an online article criticizing Mr. Musk and X.”
Despite those losses, the Trump FTC has continued using its power to pressure ad companies into ending brand-safety initiatives. Last year, the FTC imposed merger conditions prohibiting advertising boycotts in its approval of Omnicom’s $13.5 billion acquisition of Interpublic.
This week’s settlements with Dentsu, Publicis, and WPP impose similar requirements. The deals were approved by US District Judge Mark Pittman the same day they were filed.
The settlements bar the ad firms from making agreements with third parties to refuse placement of ads “based on Covered Bases.” The settlements define Covered Bases as follows:
“Covered Bases” means (1) Political or ideological viewpoints (including viewpoints as to the veracity of news reporting or other politically or ideologically contested facts, such as their characterization as “misinformation,” “disinformation,” “bias,” or similar terms); (2) adherence to journalistic standards or ethics established or set by a Third Party; and/or (3) commitment or adherence to diversity, equity or inclusion (DEI), such as diverse ownership or casting. Covered Bases shall not include fraudulent content.
The settlements prohibit the use of third-party individuals or entities involved in “rating, ranking, or evaluating Media Publishers according to Covered Bases.” A business can still avoid advertising on certain platforms if these third parties are not involved, as the settlements let each ad company make agreements with each client about how to direct that client’s advertising spending.
The states that joined the FTC lawsuit against the ad companies are Florida, Indiana, Iowa, Montana, Nebraska, Texas, Utah, and West Virginia. The ad firms agreeing to the settlements did not admit the allegations in the complaint.
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