FTC and Eight States Settle With Ad Agencies Over Alleged Boycotts

Settlement targets alleged coordinated ad restrictions based on political content.

FTC and Eight States Settle With Ad Agencies Over Alleged Boycotts
Photo of the Federal Trade Commission building in Washington by Alex Brandon/AP.

WASHINGTON, April 16, 2026 – Three major advertising agencies reached a proposed settlement with the Federal Trade Commission and eight states over allegations they violated antitrust law by coordinating boycotts of conservative media outlets and online platforms, including X, the agency said Wednesday

The complaint, filed in federal court in Texas, alleges the firms colluded to limit advertising on certain platforms based on political content.

The settlement, if approved by a federal judge, would bar the firms from adopting shared “brand-safety” standards, which restrict ad placements based on what regulators described as politically biased criteria.

The case comes as regulators have aligned with the Trump administration’s increased scrutiny of content moderation and alleged online censorship.

According to the suit, major ad agencies Publicis Groupe, WPP and Dentsu adopted common “brand safety” standards rather than competing independently. The arrangement allowed “the agencies [to] speak as a single entity” in the advertising marketplace.

The firms allegedly coordinated those standards through trade groups, including efforts to establish shared thresholds for acceptable content.

The agreement insulated the ad agencies from competitive pressures that would otherwise have existed, the complaint said.

FTC Chairman Andrew Ferguson said such practices “distorted the marketplace of ideas by discriminating against speech and ideas,” in a release.

WPP said it reached the agreement without admitting wrongdoing and that it “reflects our existing and ongoing commitment to provide our clients with unbiased advice.”

“Brand safety,” ensuring ads do not appear next to controversial content, has become a central focus for advertisers, even as debate grows over how such standards are defined and enforced.

Dentsu said, “Our dedication to delivering value and maintaining the highest standards of compliance is unchanged.” Publicis did not respond to requests for comment. 

The settlement follows a similar FTC agreement last year involving Omnicom Group and Interpublic Group, which barred coordinated advertising restrictions based on political viewpoints while allowing individual decisions.

Texas Attorney General Ken Paxton called the agreement a win for free speech. “A coordinated group of woke, powerful individuals attempted to suppress that Constitutional right,” he said. 

Still, critics have argued advertisers and their agents have a free-speech right to choose where they want to place their advertisements.

After Elon Musk acquired Twitter in 2022, many advertisers paused spending on the platform partly over content moderation concerns. In 2024, X sued several companies, alleging an unlawful boycott.

Member discussion

Popular Tags