The Federal Trade Commission pressured three advertising firms into settlements that will likely result in more ad spending on conservative media platforms. The FTC and eight US states filed a lawsuit against ad firms Dentsu, Publicis, and WPP yesterday, and simultaneously announced settlements with all three companies. The complaint alleges a conspiracy of “various interested parties to demonetize disfavored conservative news and opinion sites by denying them digital advertising revenue.” The FTC filed suit in US District Court for the Northern District of Texas, which happens to be Elon Musk’s preferred judicial venue. In a press release, the FTC claimed that starting in 2018, the three firms “unlawfully colluded to impose common ‘brand safety’ standards across the digital advertising industry… The ad agencies, together with their primary competitors Omnicom and Interpublic Group, operated through trade associations to establish a common ‘Brand Safety Floor’ to target ‘misinformation.’” The FTC also said that “firms like NewsGuard and the Global Disinformation Index used this misinformation designation as a means to promote the demonetization of disfavored political viewpoints.” “This unlawful collusion not only damaged our marketplace, but also distorted the marketplace of ideas by discriminating against speech and ideas that fell below the unlawfully agreed-upon floor,” FTC Chairman Andrew Ferguson said. “The proposed order remedies the dangers inherent to collusive practices and restores competition to the digital news ecosystem.” Omnicom and Interpublic which merged last year, are already subject to a similar FTC order. The FTC complaint recycles various claims made by conservatives about brand-safety initiatives that attempted to reduce ad spending on sites distributing misinformation and other objectionable content. One of the FTC complaint’s main targets is the ad industry’s Global Alliance for Responsible Media (GARM) project, even though it was shut down nearly two years ago after a lawsuit filed by Musk’s X. GARM, a World Federation of Advertisers project, set a Brand Safety Floor standard on misinformation “to ensure that advertising revenue would be denied to the conservative website Breitbart specifically,” the FTC said. As a result, “conservative publishers identified as publishing what the Brand Safety Floor defined as ‘misinformation’ suffered dramatic declines in their sales of digital advertising inventory,” the FTC said. A similar Brand Safety Floor standard was imposed by the American Association of Advertising Agencies’ Advertiser Protection Bureau (APB), the FTC said.
Ad firms settle with Trump FTC over claims they boycotted conservative media