The FTC’s new lawsuit also complains that Media Matters for America pressured advertisers like Fox News and
Trump FTC approves brand-protection initiative
Musk lost a lawsuit against advertisers last month when a judge ruled that the boycott of X was legal. In another case, a judge blocked an FTC investigation into Media Matters, finding that the FTC retaliated against Media Matters when it “engaged in blatant First Amendment activity when it published an online article criticizing Mr. Musk and X.”
Despite those losses, the Trump FTC has continued to use its power to pressure advertising companies to end brand-protection initiatives. Last year, the FTC approved Interpublic’s $13.5 billion acquisition of Omnicom and imposed merger conditions barring advertising boycotts.
Similar requirements are imposed in this week’s agreements with Dentsu, Publicis and WPP. The deals were approved by US District Judge Mark Pittman the same day they were filed.
The agreements prohibit advertising firms from settling with third parties to refuse to serve advertisements “on covered grounds.” Settlements define covered grounds as follows:
“Covered Grounds” means (1) political or ideological viewpoints (including viewpoints regarding the veracity of news reporting or other politically or ideologically disputed facts, such as describing them as “disinformation,” “misinformation,” “bias,” or similar terms); (2) adhere to journalistic standards or ethics established or determined by any third party; and/or (3) commitment to or compliance with diversity, equity, or inclusion (DEI), such as diverse ownership or casting. The grounds covered will not include fraudulent content.
The agreements prohibit the use of third party individuals or entities involved in “rating, ranking or evaluating media publishers according to the covered grounds.” A business can still avoid advertising on certain platforms if these third parties are not involved, because the settlement allows each advertising company to make agreements with each client regarding how to direct that client’s advertising spending.
The states joining the FTC lawsuit against the advertising companies are Florida, Indiana, Iowa, Montana, Nebraska, Texas, Utah and West Virginia. The advertising firms that agreed to the settlement did not admit to the allegations in the complaint.
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