The Federal Trade Commission (FTC), in collaboration with several states, has initiated action against leading U.S. advertising agencies for colluding to set common brand safety standards that hinder competition in the digital advertising ecosystem.

According to the FTC's complaint, since 2018, major agencies including WPP, Publicis, and Dentsu have unlawfully collaborated to impose uniform 'brand safety' standards, which were intended to target misinformation. This collusion involved their competitors Omnicom and IPG, who worked through trade associations to create a 'Brand Safety Floor' that limited competition.

The complaint alleges that firms like NewsGuard and the Global Disinformation Index exploited this misinformation designation to promote the demonetization of certain political viewpoints. The FTC argues that in a competitive market, ad agencies should compete by offering diverse brand-safety tools that provide quality at lower costs, but the collusion insulated them from these competitive pressures.

To address the FTC's allegations, the involved ad agencies have agreed to a proposed order that aims to cease the alleged coordinated conduct and prevent future occurrences. FTC Chairman Andrew N. Ferguson emphasized that the antitrust laws are designed to maintain a competitive market free from practices that distort competition, such as economic boycotts.

The complaint further details how the agencies used their trade associations, including the World Federation of Advertisers’ Global Alliance for Responsible Media and the American Association of Advertising Agencies’ Advertiser Protection Bureau, to establish these common standards. The brand-safety agreement categorized websites with 'misinformation' as ineligible for advertising revenue, thereby limiting competition.

If the proposed order is approved by a federal judge, it will prohibit the largest U.S. advertising agencies from entering into agreements that set common brand safety standards or restrict advertising based on biased criteria. Omnicom and IPG are also subject to a similar FTC order.

The Commission's vote to issue the complaint and final order was 1-0-1, with one commissioner recused. The complaint and order have been filed in the U.S. District Court for the Northern District of Texas, with support from several states including Florida, Indiana, and Texas.