NewsGuard pushes back against FTC investigation * Science and Technology Times

NewsGuard is suing the FTC to halt an investigation it claims is aimed at punishing its editorial judgments.
The FTC says the company’s accusations are baseless and that its inquiry concerns potential antitrust issues.
The dispute reflects a broader pattern of conflict between the Trump administration and media‑related organizations.

A growing clash between NewsGuard and the FTC

NewsGuard, a company known for rating the credibility of news outlets, has found itself at the center of a legal dispute with the federal government. The organization, which typically maintains a low public profile, filed a lawsuit last month against the Federal Trade Commission and its chairman, Andrew Ferguson. Its complaint argues that the agency is using its authority to pressure the company over its assessments of certain media outlets. The FTC, in response, has dismissed the allegations as unfounded.

The conflict comes amid a series of confrontations between the Trump administration and major news organizations. Since returning to office in January 2025, the administration has engaged in legal battles with The Associated Press, CBS News’ parent company, The Wall Street Journal, and The New York Times. Each dispute involves claims that the government is retaliating against reporting it finds unfavorable. NewsGuard’s lawsuit adds another chapter to this escalating pattern.

According to the filing, NewsGuard believes the FTC is attempting to censor its speech by challenging its credibility ratings. The company argues that the investigation has nothing to do with trade or commerce, the agency’s usual domain. Instead, it claims the inquiry is driven by political motivations tied to the administration’s dissatisfaction with NewsGuard’s evaluations. The FTC has rejected this characterization, calling the accusations “untethered from both law and fact.”

A politically charged regulatory environment

The FTC under Ferguson has taken on a more assertive role than in previous administrations. Similar to the Federal Communications Commission under Brendan Carr, the agency has launched investigations into media‑related issues that align with the administration’s priorities. Ferguson has stated publicly that he follows the law but takes policy direction from the president. His comments underscore the political context surrounding the agency’s recent actions.

One of the FTC’s earlier targets was Media Matters for America, a liberal watchdog group. A federal judge halted that investigation last summer, ruling that the inquiry infringed on the organization’s free speech rights. This decision has heightened scrutiny of the FTC’s approach to politically sensitive cases. NewsGuard’s lawsuit suggests that the company views itself as the latest subject of an overly aggressive regulatory strategy.

NewsGuard, founded in 2018 by Steven Brill and Gordon Crovitz, evaluates thousands of news outlets using criteria such as accuracy, sourcing, and transparency. Its ratings are used by advertisers and artificial intelligence companies seeking to avoid unreliable sources. A monthly subscription costs $4.95, and much of its revenue comes from advising advertisers on brand‑safety risks. These services have made the company influential in determining which outlets receive advertising dollars.

The role of Newsmax and conservative criticism

The dispute intensified after NewsGuard gave the conservative network Newsmax a low score of 20 out of 100. NewsGuard said the rating reflected repeated violations of basic journalism standards. Newsmax responded by accusing the company of targeting conservative media and urged Republican lawmakers to take action against it. The network’s criticism has contributed to political pressure on NewsGuard, according to the lawsuit.

Newsmax spokesman Bill Daddi argued that NewsGuard’s co‑founder Steve Brill has a long history of supporting liberal causes. Brill countered that his only political involvement was working for Republican mayor John Lindsay decades ago and that he has not donated to political campaigns. NewsGuard maintains that its ratings are based on transparent, apolitical criteria. The company also points out that Fox News has received higher scores than MSNBC in some evaluations.

Despite these defenses, conservative groups such as the Media Research Center have published studies claiming that NewsGuard favors liberal outlets. The FTC has cited congressional concerns that NewsGuard’s services could be part of coordinated efforts to discredit certain media organizations. As part of its investigation, the agency has demanded extensive internal documents, financial records, and subscriber information dating back to the company’s founding. NewsGuard argues that complying would be costly and could expose its clients to political retaliation.

A legal battle with broader implications

The FTC has previously restricted the use of news‑rating services in the advertising industry. As a condition for approving a merger between Omnicom and IPG, two major media‑buying firms, the agency prohibited the combined company from using such services to avoid political discrimination. NewsGuard says this decision has already cost it business. The company fears that the current investigation could further damage its operations.

In court filings, the FTC insists that its inquiry is part of a broader investigation into whether advertiser boycotts violate antitrust laws. The agency says it has issued similar information requests to more than a dozen organizations. It also questions why NewsGuard waited eight months before filing its lawsuit if the demands were as burdensome as claimed. NewsGuard counters that it initially tried to cooperate but eventually concluded that the agency was not acting in good faith.

Brill has expressed concern that the investigation will continue until NewsGuard “knuckles under.” He declined to speculate on whether the government intends to shut the company down. The case now moves forward in federal court, where judges will determine whether the FTC’s actions fall within its legal authority or cross into unconstitutional pressure on speech.