X is suing a group of major advertisers, accusing them of an “unlawful boycott” of the platform formerly known as Twitter. In the lawsuit filed on Tuesday, X claims that Unilever, Mars, CVS, Ørsted and dozens of other brands conspired to “collectively withhold billions of dollars in advertising revenue” through the World Federation of Advertisers (WFA) industry initiative.
To join the WFA’s Global Alliance for Responsible Media (GARM) initiative, companies must agree to ban advertising on social platforms that do not meet the organization’s safety standards. X claimed that GARM “organized an advertiser boycott of Twitter” to force the company to comply with the initiative’s security standards. The lawsuit was filed despite X announcing last month that it was “pleased” to rejoin GARM.
“The evidence and the facts are on our side. Their conspiracy to boycott X threatens our ability to thrive in the future,” X CEO Linda Yaccarino said in a video posted to X. This puts your global town square—a place where you can express yourself freely and openly—at long-term risk.
Elon Musk said in another post that he “strongly encourages[s] Any company that is subject to systemic boycotts from advertisers and is subject to lawsuits” may also be subject to “criminal liability” under the Racketeer Influenced and Corrupt Organizations Act (RICO), which is designed to combat organized crime.
You can read the full text of People are shocked”. Earlier this month, House Judiciary Committee Chairman Jim Jordan (R-Ohio) sent a letter to 40 GARM-related companies asking why advertisers are “boycotting” right-wing media outlets such as The Joe Rogan Experience, The Daily Telegraph, Breitbart or fox news. Musk has threatened to sue advertisers who participate in the so-called boycott.
It’s unclear how X’s lawsuit will progress in court because, as Techdirt points out, the ability to choose where to advertise is protected by the First Amendment. Check My Ads, an ad tech watchdog group, also said advertisers have the right “not to send money to platforms that promote hate and conspiracy.”
