Media Matters, a liberal advocacy organization, sued the Federal Trade Commission on Monday, claiming that the agency was waging a “campaign of retribution” against the group on behalf of the Trump administration and Elon Musk.
The F.T.C. started investigating Media Matters last month over whether the organization had illegally colluded with other advertising advocacy groups to pinch off revenue from X, Mr. Musk’s social media company, and other right-leaning sites. Media Matters in 2023 reported that ads on X appeared alongside antisemitic content.
Media Matters said in its lawsuit that the Federal Trade Commission had employed “sweeping governmental powers to attempt to silence and harass an organization for daring to speak the truth.” The lawsuit, filed in federal court in Washington, D.C., claimed that the agency was attempting to limit the organization’s free speech rights, and asked a judge to immediately halt the investigation.
In its lawsuit, Media Matters blamed pressure from Mr. Musk, Republican state attorneys general and the Trump administration for “disruptions in fund-raising” and some staff cuts. Media Matters has also been cut out of coalitions with other advocacy groups that feared the association could lead to retribution, the lawsuit said. The group has effectively censored itself for fear of retaliation, according to the lawsuit, limiting its reporting on X, Mr. Musk and the F.T.C.
The F.T.C. and a representative for X did not immediately respond to a request for comment.
Andrew Ferguson, the F.T.C. chairman appointed by Mr. Trump, has said that advertiser boycotts represent a form of censorship and can choke off funding for important online venues for speech.
The F.T.C.’s investigation is the latest example of the Trump administration’s taking actions against individuals and organizations that play critical roles in the infrastructure of the political left, including some elite law firms and the Democratic fund-raising platform ActBlue.
As part of its inquiry, the F.T.C. is also investigating whether roughly a dozen other prominent advertising and advocacy groups violated antitrust law by coordinating boycotts among advertisers.
“The Trump administration has demonstrated that it will not hesitate to abuse the full powers of the federal government to undermine the First Amendment and stifle dissent,” Angelo Carusone, the chairman and president of Media Matters, said in a statement. “If the Trump administration is allowed to use this unlawful investigation to punish legitimate reporting on behalf of a political ally — then there is nothing to stop it from targeting anyone who stands up and exercises their rights.”
The Media Matters lawsuit said that a recent feud between Mr. Trump and Mr. Musk did not derail the F.T.C.’s investigation as some had suggested it might.
Mr. Musk has filed several lawsuits against Media Matters contending the group’s research had interfered with X’s advertising business, and the organization has also been investigated by conservative state attorneys general in Texas and Missouri. Mr. Musk’s lawsuits are ongoing, while the state investigations were halted by a federal court last year that ruled the inquiries were likely to infringe on Media Matters’ right to free speech.
In 2023, Media Matters published research showing that ads appeared on X alongside neo-Nazi posts and other antisemitic content. Mr. Musk at the time promised to unleash a “thermonuclear” lawsuit against the group.
The report came amid an exodus of advertisers from the site, many citing concerns about hateful and violent content. Mr. Musk at the time also endorsed an antisemitic conspiracy theory on the platform.
In its lawsuit, Media Matters claims that the F.T.C.’s investigation — and the various inquiries it has faced from Mr. Musk and state attorneys general — have not uncovered evidence that it secretly coordinated with other groups. Instead, the inquiries have focused on Media Matters’ public research and reporting, the lawsuit said.
Media Matters pointed in its lawsuit to Mr. Musk’s complaints about the organization on X. On Friday, Mr. Musk chastised Grok, the chatbot created by his artificial intelligence company xAI, for using Media Matters as a resource in its answers about misinformation.
“Shame on you, Grok,” Mr. Musk wrote in a post, adding, “Your sourcing is terrible.”
Kate Conger is a technology reporter based in San Francisco. She can be reached at [email protected].
Kenneth P. Vogel is based in Washington and investigates the intersection of money, politics and influence.
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