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Appeals Court Backs Media Matters in Dispute Over FTC Subpoena

By  |  October 23, 2025

A U.S. federal appeals court on Thursday refused to reinstate a subpoena issued by the Federal Trade Commission (FTC) seeking information from the liberal watchdog group Media Matters, according to Reuters. The decision marks a temporary win for the nonprofit as the FTC investigates whether media organizations coordinated advertising boycotts targeting certain social media platforms.

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    The U.S. Court of Appeals for the District of Columbia Circuit, in a divided 2-1 ruling, upheld an earlier decision by a district court judge who had blocked the subpoena. The lower court had described the FTC’s efforts as a “fishing expedition” and suggested the move appeared retaliatory. Per Reuters, the appellate judges concluded that the FTC had not demonstrated a strong likelihood of success in its case. Judges Patricia Millett and Robert Wilkins supported the decision, while Judge Justin Walker dissented, arguing that Media Matters had provided only “sparse” evidence that the agency’s actions were improper.

    The subpoena had sought internal communications between Media Matters and other advocacy groups related to how they categorized or labeled online content as misinformation or hate speech. The FTC, led by Republican Chairman Andrew Ferguson, has faced criticism over the probe, which some view as politically motivated. Both the FTC and Media Matters declined to comment on the ruling, according to Reuters.

    Media Matters, based in Washington, D.C., became a target of criticism from Elon Musk and some Republican officials after it reported on advertising placements on Musk’s social media platform, X. In 2023, X sued the organization, accusing it of defamation over a report alleging that ads from major companies appeared next to extremist content on the site. Media Matters denied wrongdoing and filed its own countersuit, accusing X of “abusive” legal tactics. It also separately sued the FTC, arguing that the agency’s investigation was intended to intimidate and punish the group for its reporting.

    According to Reuters, Media Matters asked U.S. District Judge Sparkle Sooknanan in June to halt what it described as an effort by the Trump Administration and allies of Elon Musk to suppress its journalism. Judge Sooknanan agreed, ruling that the nonprofit was likely to prevail and blocking enforcement of the FTC’s subpoena.

    The FTC argued in its appeal that the lower court’s ruling was “unprecedented” and could hinder federal enforcement efforts across multiple agencies by inviting judicial intervention in ongoing investigations. Media Matters countered that the FTC’s actions had already damaged its reputation and operations, saying the scrutiny led some partners to distance themselves from the group.

    Source: Reuters