The Federal Trade Commission (FTC) and eight states have announced a proposed settlement with major ad agencies to prevent them from collaborating to avoid platforms like X due to their political views. This follows the dismissal of a similar lawsuit from X by a judge. The FTC claims that ad agencies violated antitrust rules by agreeing on brand safety measures that disfavor sites labeled as containing misinformation, including establishing groups like the now-defunct Global Alliance for Responsible Media (GARM). GARM was named in a 2024 lawsuit by X, alleging antitrust violations and an “illegal boycott.” This lawsuit was dismissed with prejudice, with the judge stating it didn’t constitute an antitrust claim.
The FTC also alleges that organizations like NewsGuard, Global Disinformation Index (GDI), Check My Ads, and Media Matters for America labeled certain opinions as misinformation, influencing ad buyers to demonetize these sites. Media Matters was sued by X for reporting finding ads for major brands alongside pro-Nazi content. If approved by a federal judge, the order will prohibit agencies WPP, Publicis, and Dentsu from agreements limiting ad buys on publishers based on content and will require them to submit annual compliance reports and appoint a compliance monitor for five years.
Dentsu stated their commitment to compliance, while WPP declined to comment. GDI pointed to a Financial Times article, maintaining its goal of safer internet transactions. NewsGuard denied collusion with ad agencies, asserting its standards are non-partisan. Publicis hasn’t responded, and the World Federation of Advertisers declined to comment. FTC Chair Andrew Ferguson emphasized that the proposed order addresses collusion and restores competition. Last year, the FTC approved a merger between Omnicom and IPG with similar restrictions against steering ad buys based on political or ideological views.