NewsGuard Sues FTC, Alleges Political Censorship Amid Broader Media Disputes
NewsGuard Technologies has filed a lawsuit against the Federal Trade Commission (FTC) and its chairman, Andrew Ferguson, seeking to halt an investigation. The FTC accuses NewsGuard of attempting to suppress conservative speech, while NewsGuard asserts it is being compelled by vindictive power. This legal action follows a trend of disputes between the Trump administration and various journalism organizations.
Context of Media Disputes
Since January 2025, the Trump administration has been involved in several legal conflicts with media organizations, setting a contentious backdrop for the current lawsuit:
- A dispute with The Associated Press over the naming of the Gulf of Mexico.
- A settlement with CBS News' corporate parent regarding "60 Minutes" editing practices.
- A lawsuit against The Wall Street Journal concerning reporting on Trump and Jeffrey Epstein.
- A legal battle with The New York Times over Pentagon reporting restrictions.
The Lawsuit's Core Claims
NewsGuard's lawsuit, filed last month in U.S. District Court in the District of Columbia, alleges that the FTC is using its power to censor speech based on disagreement with NewsGuard’s judgments about news source reliability. The company views the FTC's actions as an overreach designed to silence criticism of certain media outlets. The FTC, in response, has stated that NewsGuard’s accusations are "untethered from both law and fact."
FTC's Evolving Role Under Ferguson
Under Chairman Andrew Ferguson, the FTC, typically a low-profile federal agency, has become more active on issues important to the Trump administration and its supporters, particularly concerning media. Ferguson has indicated that policy priorities are set by the administration. The agency previously launched an investigation into Media Matters for America, which was later halted by a federal judge who ruled the inquiry violated the group's free speech rights.
NewsGuard's Mission and Methodology
NewsGuard, founded in 2018 by Steven Brill and Gordon Crovitz, provides credibility ratings for news outlets and websites based on journalistic standards. The company's business includes advising advertisers on brand-safe news sites and assisting artificial intelligence companies in identifying trustworthy information sources. A monthly subscription to its services costs $4.95.
Ratings Under Scrutiny: The Newsmax Example
The controversy surrounding NewsGuard's ratings is exemplified by its assessment of the Trump-friendly television network Newsmax. NewsGuard assigned Newsmax a score of 20 out of 100, describing its website as "unreliable because it severely violates basic journalism standards."
Following this rating, Newsmax has urged Republican lawmakers and regulators to take action against NewsGuard, according to the lawsuit. A Newsmax spokesman, Bill Daddi, stated that NewsGuard was created by Steve Brill to target conservative media and deny them advertising revenue, characterizing Brill as a Democratic Party activist. Brill has denied these claims, stating his only political activity was working for a Republican mayor in the late 1960s/early 1970s and that he has been a journalist since, without donating to politicians.
NewsGuard maintains its ratings are based on objective criteria, including whether an outlet publishes false material, distorts arguments, uses multiple sources, distinguishes news from opinion, and corrects errors. The company has noted instances where Fox News received higher ratings than MSNBC to counter claims of liberal bias. However, the conservative Media Research Center has published studies suggesting NewsGuard favors liberal outlets.
Scope of the FTC Investigation
The FTC initiated its investigation into NewsGuard following congressional inquiries that linked NewsGuard's services to "coordinated actions to demonize disfavored media entities." The agency has requested numerous internal documents, emails, financial reports, and subscriber lists from NewsGuard since its inception. NewsGuard views this request as unduly expensive and burdensome, expressing concern that the information could be used to target its subscribers.
Impact on Business and Free Speech Concerns
The FTC's actions have already had a tangible impact on NewsGuard's business. As a condition for approving the merger of Omnicom and IPG, two major media buying firms, the FTC prohibited the new company from using services that review and rate news sites. This measure was intended to prevent the denial of advertising based on political considerations, and NewsGuard claims it has already resulted in lost business.
"The whole idea that any speaker has to justify to the government that it’s not biased is a really troubling thought. We have a constitutional right to be biased. It just so happens that we started the company on the core principle that we were going to be totally apolitical."
– Steven Brill, NewsGuard CEO
FTC's Rebuttal
The FTC stated in court documents that it is conducting a broad investigation into whether advertiser boycotts violate antitrust laws and has issued similar information requests to over a dozen other entities. The agency described NewsGuard’s charges as "completely meritless" and questioned why NewsGuard waited eight months after the order was issued to file the lawsuit. NewsGuard indicated they initially attempted to cooperate, believing it would lead the FTC to drop the case, but realized the agency "weren’t worried about the merits." NewsGuard believes the FTC's actions will continue until the company "knuckles under."