Media Matters for America v. Federal Trade Commission

CourtDistrict Court, District of Columbia
DecidedAugust 15, 2025
DocketCivil Action No. 2025-1959
StatusPublished

This text of Media Matters for America v. Federal Trade Commission (Media Matters for America v. Federal Trade Commission) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Media Matters for America v. Federal Trade Commission, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

MEDIA MATTERS FOR AMERICA,

Plaintiff, Civil Action No. 25 - 1959 (SLS) v. Judge Sparkle L. Sooknanan

FEDERAL TRADE COMMISSION, et al.,

Defendants.

MEMORANDUM OPINION

Speech on matters of public concern is the heartland of the First Amendment. The principle

that public issues should be debated freely has long been woven into the very fabric of who we are

as a Nation. Without it, our democracy stands on shaky ground. It should alarm all Americans

when the Government retaliates against individuals or organizations for engaging in

constitutionally protected public debate. And that alarm should ring even louder when the

Government retaliates against those engaged in newsgathering and reporting.

This case presents a straightforward First Amendment violation. Media Matters for

America is a nonprofit media company that is over two decades old. In November 2023, it ran a

story reporting that as a result of Elon Musk’s acquisition of Twitter (now “X”), advertisements

on the social media platform were appearing next to antisemitic posts and other offensive content.

Mr. Musk immediately promised to file “a thermonuclear lawsuit against Media Matters.” And he

followed through. In the weeks and months that followed, X Corp. and its subsidiaries sued Media

Matters all over the world, at least until a federal district court preliminarily enjoined this

aggressive litigation strategy. Meanwhile, seemingly at the behest of Steven Miller, the current

White House Deputy Chief of Staff, the Missouri and Texas Attorneys General issued civil investigative demands (CIDs) to Media Matters, both of which were preliminarily enjoined in this

Court as likely being retaliatory in violation of the First Amendment.

But these court victories did not end the fight for Media Matters. Now the Federal Trade

Commission (FTC) has taken up the cause. After Andrew Ferguson took on his new role as the

Chairman of the FTC, the agency issued a sweeping CID to Media Matters, purportedly to

investigate an advertiser boycott concerning social media platforms. That CID should have come

as no surprise. Before President Trump selected him to head the FTC, Mr. Ferguson appeared on

Steve Bannon’s podcast, where he said that it is “really important that the FTC take investigative

steps in the new administration under President Trump” because “progressives” and others who

are “fighting “disinformation” were “not going to give up just because of the election.” One of his

supporters, Mike Davis, who urged President Trump to nominate him to the role, made several

public comments about Media Matters, including that Mr. Musk should “nuke” the media

company. And after taking the reins, Chairman Ferguson brought on several senior staffers at the

FTC who previously made public comments about Media Matters.

Media Matters brought this lawsuit to challenge the FTC’s CID, alleging that it is

retaliatory in violation of the First Amendment and that it is overbroad in violation of the Fourth

and First Amendments. Before the Court is a motion seeking preliminary injunctive relief from

the CID. The Court agrees that a preliminary injunction is warranted.

The FTC claims that this Court should look the other way because it lacks the authority to

hear this lawsuit. It is wrong. Relying on Thunder Basin Coal Company v. Reich, 510 U.S. 200

(1994), the FTC argues that Congress precluded federal court jurisdiction to hear challenges to the

FTC’s CIDs because it channeled those claims elsewhere in the Federal Trade Commission Act

(FTC Act). But the FTC Act does no such thing. Although it gives the FTC the authority to bring

2 a lawsuit in federal district court to enforce a CID if the recipient fails to comply, it says nothing

about claims by recipients of CIDs wishing to challenge them. According to the FTC, a recipient

of a CID that violates the First Amendment may only challenge that CID if the FTC chooses to

bring suit itself. It is hard to believe that Congress intended such a result. Nothing in the FTC Act

suggests that Congress meant to declare open season on journalists by allowing a retaliatory FTC

to decide if and when its retaliation will be reviewed by a federal court.

The FTC also argues that Media Matters may not bring constitutional claims to challenge

the agency’s actions. It takes the broad stance that the Administrative Procedure Act (APA)

provides the exclusive remedy for judicial review of agency conduct, preventing federal courts

from hearing even constitutional claims. But nothing in the APA suggests Congress meant to

foreclose equitable relief for constitutional violations that have been challenged without reliance

on the APA. Perhaps that is why courts in this District have routinely allowed equitable

constitutional claims to proceed even when plaintiffs could not sue under the APA.

On the merits, the Court finds that Media Matters is likely to succeed on its First

Amendment retaliation claim, which is all it needs at this stage. Media Matters engaged in

quintessential First Amendment activity when it published an online article criticizing Mr. Musk

and X. And the Court finds that the FTC’s expansive CID is a retaliatory act. There can be no

doubt that such a CID would deter a reporter of ordinary firmness from speaking again. Indeed,

the FTC’s CID has had its intended effect. Because of the CID, Media Matters has decided against

pursuing certain stories about the FTC, Chairman Ferguson, and Mr. Musk. Finally, given the

comments by Chairman Ferguson and his colleagues about Media Matters, the timing of the CID,

and evidence of pretext, Media Matters is likely to show that retaliatory animus was the but-for

3 cause of the FTC’s CID. Because the other equitable factors also favor Media Matters, the Court

grants a preliminary injunction in its favor.

BACKGROUND

A. Statutory Background

“Congress created the Federal Trade Commission in 1914 to regulate the use of ‘unfair

methods of competition in commerce.’” Meta Platforms, Inc. v. FTC, 723 F. Supp. 3d 64, 72

(D.D.C. 2024) (quoting Am. Fin. Servs. Ass’n v. FTC, 767 F.2d 957, 966 (D.C. Cir. 1985)).

The FTC “administers the FTC Act, which prohibits the use of ‘unfair methods of

competition’ and, since 1938, ‘unfair or deceptive acts or practices in or affecting commerce.’” Id.

(quoting 15 U.S.C. § 45(a)(1)). The statute gives the FTC “the ability to investigate violations of

the FTC Act” using various tools, including the issuance of civil investigative demands (CIDs).

Id. (citing 15 U.S.C. § 57b-1(b)). And when someone fails to comply with a CID, the FTC “may

file . . . in [a] district court of the United States . . . a petition for an order of such court for the

enforcement” of the CID. 15 U.S.C. § 57b-1(e).

B. Factual Background

“The following facts are alleged in the Complaint or drawn from declarations in the record

that are not disputed in relevant part, except where otherwise noted.” Postal Police Officers Ass’n

v. U.S. Postal Serv., 502 F. Supp. 3d 411, 415 (D.D.C. 2020).

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