FTC Opens Investigation of Media Matters, Target of Elon Musk Lawsuit

Musk is suing the watchdog group over a 2023 report showing that ads were placed next to racist and antisemitic Twitter/X accounts The post FTC Opens Investigation of Media Matters, Target of Elon Musk Lawsuit appeared first on TheWrap.

May 23, 2025 - 06:40

Escalating the Trump Administration’s attacks on groups associated with the American political left, the Federal Trade Commission has opened an investigation of Media Matters for America over accusations similar to those made by staunch Trump ally Elon Musk.

In letter to Media Matters staff on Wednesday morning. FTC says it is investigating whether the group colluded illegally with advertisers who pulled ads from X (formerly Twitter). Among other things, FTC is demanding the group turn over a large amount of internal documents including budgets, communications with other watchdog organizations, and documentation of how “harmful” online content affects advertisers.

In statement Wednesday, Media Matters said, “the Trump administration has been defined by naming right-wing media figures to key posts and abusing the power of the federal government to bully political opponents and silence critics. It’s clear that’s exactly what’s happening here, given Media Matters’ history of holding those same media figures to account. These threats won’t work; we remain steadfast to our mission.”

Elon Musk filed a defamation lawsuit in November 2023 in response to a Media Matters report documenting repeated instances of paid ads placed next to pro-Nazi and white nationalist content on Twitter. The billionaire alleges the group “manufactured” that evidence — which consisted of screenshots taken live on X — and also accused MMFA of collusion with advertisers.

Media Matters denies such accusations and legal experts have repeatedly affirmed Musk’s lawsuit is without merit and in violation of the First Amendment of the U.S. Constitution. Critics also note that the lawsuit itself acknowledges that ads actually were placed next to extremist content on X.

The lawsuit was filed in Federal District Court of Northern Texas, known for being extremely friendly to right wing interests. Presiding Judge Reed O’Connor is also a shareholder in Musk’s electric vehicle company Tesla. Republican Attorneys General in Texas and Missouri have also opened investigations of Media Matters.

Since Musk filed the lawsuit, mounting legal costs forced Media Matters to lay off a large number of employees and scale back some operations.

MMFA, which tracks and reports on extremist content in right wing media, was founded in 2004 by former conservative activist and journalist David Brock.

The post FTC Opens Investigation of Media Matters, Target of Elon Musk Lawsuit appeared first on TheWrap.