The World Federation of Advertisers (WFA) announced today
that it is suspending the operations of its Global Alliance for Responsible
Media (GARM) program. This decision comes just days after the social media
platform X, formerly known as Twitter, filed a lawsuit against GARM and the WFA
alleging the industry group illegally coordinated an advertiser boycott of X.
According to Stephan Loerke, CEO of the WFA, the choice to
pause GARM was a difficult one. As a not-for-profit organization with limited
resources, continuing operations in the face of X's legal action presented
challenges. However, Loerke stated that the WFA and GARM plan to vigorously
contest X's allegations in court. They remain confident that the outcome will
demonstrate GARM's full compliance with competition regulations.
X's lawsuit claims that GARM has caused the platform to lose
billions in ad revenue by advising marketers to avoid X, especially following
Elon Musk's acquisition of the company last year. The basis for these claims
comes from a report submitted to the House Judiciary Committee suggesting GARM
steered advertisers away from conservative-leaning outlets in order to choke
off their income, potentially violating the Sherman Antitrust Act.
While most legal experts believe X's case against GARM has
little merit, the act of initiating costly litigation against a relatively
small non-profit could achieve X's aims even without a favorable verdict. X has
previously taken similar legal action against other research groups critical of
the platform's handling of hate speech and offensive content under Musk's
leadership. Some, like the Stanford Internet Observatory, have had to shutter
due to mounting legal expenses from conservative organizations.
The Center for Countering Digital Hate (CCDH) released a
report this week detailing 50 instances so far this year where Musk himself
amplified misinformation or misleading content to his over 150 million
followers. None of these posts received a "Community Note" to provide
context or corrections, raising doubts about the efficacy of X's user-driven
fact-checking system.
Musk has openly stated his views will take precedence over
X's profitability, even if it means losing advertisers. He's gone as far as
telling concerned advertisers to "go f*** themselves" if they
disagree with his approach. This stance, combined with an increasing
association with conspiracy theories and extremism, has driven many major
brands away from the platform.
Some speculate X's lawsuit against GARM, regardless of its
legal foundations, could intimidate other watchdog groups and researchers into
silence to avoid expensive legal battles. With critics sidelined, X may have an
easier time winning back skittish advertisers unaware of the ongoing risks.
As GARM suspends its services, SMM panel operators like The
ToptierSMM are stepping in to help businesses safely and effectively promote
their brands on social media. The ToptierSMM offers a wide range of social
media marketing services, including likes, follows, comments and more, all
designed to boost visibility, engagement and credibility. Their experienced
team can develop customized SMM panel campaigns aligned with each client's
unique needs and goals.