Media Matters Sues to Block FTC Investigation, Accuses Agency of Waging a ‘Campaign of Retribution’ on Behalf of Elon Musk

The Federal Trade Commission launched an investigation into the liberal media watchdog in May The post Media Matters Sues to Block FTC Investigation, Accuses Agency of Waging a ‘Campaign of Retribution’ on Behalf of Elon Musk appeared first on TheWrap.

Liberal non-profit journalism group Media Matters for America has filed a lawsuit against the Federal Trade Commission, accusing it of waging a “campaign of retribution” against the organization.

The suit, filed in a Washington D.C. district court Monday, comes in response to an investigation the FTC launched in May to determine whether or not Media Matters had illegally worked with other groups to boycott and lower the advertising money brought in by X. As is outlined in the new lawsuit, Media Matters first reported in Nov. 2023 that ads on X were appearing next to anti-semitic and pro-Nazi propaganda.

The organization’s report sparked conflict with X Chairman Elon Musk, who vowed to immediately launch a “thermonuclear lawsuit against Media Matters and ALL those who colluded in this fraudulent attack on our company.” Afterward, state attorney generals in both Missouri and Texas launched investigations into Media Matters that were subsequently blocked and shut down in federal court over concerns of infringing on the organization’s First Amendment rights.

Musk has, however, continued to publicly smear the organization. On Friday, the former special government employee chastised Grok, the chatbot created by Musk’s xAI, for using Media Matters and Rolling Stone as some of its sources. “Your sourcing is terrible. Only a very dumb AI would believe MM and RS!” Musk wrote on X. “You are being updated this week!”

The organization now argues that the FTC’s investigation is nothing more than another effort on the part of the Trump administration to punish and silence organizations that publish negative reports about the president and his allies. 

“The Federal Trade Commission seeks to punish Media Matters for its journalism and speech in exposing matters of substantial public concern,” the lawsuit contends. “The Court should put an end to the latest effort by the Trump Administration and Elon Musk’s government allies to punish, intimidate, and harass Media Matters for publishing reporting they do not like.”

Media Matters argues in its suit that the FTC’s investigation will unconstitutionally drain the media watchdog of its resources and continue to dissuade it from reporting on Musk and Trump altogether. “Media Matters will incur significant costs for an organization of its size if it has to endure a prolonged dispute with the federal government,” the suit states.

The suit specifically calls out FTC Chairman (and Trump appointee) Andrew Ferguson. “Chairman Ferguson’s use of the power of the agency is discouraging,” the suit contends. “The chill imposed by Defendants’ retaliatory actions injures [Media Matters’] ability to investigate and publish news stories and further chills its ability to participate in a robust public discussion around political extremism on X.”

Media Matters’ suit seeks a declaration that the FTC’s investigation constitutes a violation of its First and Fourth Amendment rights and the preliminary and permanent prohibition of the FTC and any of its agents from “initiating any action” designed to further violate Media Matters’ constitutional rights.

The post Media Matters Sues to Block FTC Investigation, Accuses Agency of Waging a ‘Campaign of Retribution’ on Behalf of Elon Musk appeared first on TheWrap.

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