X, formerly known as Twitter, has filed a lawsuit against a group of major advertisers, accusing them of orchestrating an “illegal boycott.”
The lawsuit, filed on Tuesday, names Unilever, Mars, CVS, Ørsted, and numerous other brands, claiming they conspired to withhold billions in advertising revenue through the World Federation of Advertisers (WFA) initiative.
To participate in the WFA’s Global Alliance for Responsible Media (GARM), companies must agree to withhold advertising from social platforms not compliant with the organization’s safety standards. X alleges that GARM organized an advertiser boycott of Twitter to coerce compliance with these standards. Interestingly, this lawsuit comes shortly after X announced its excitement to rejoin GARM last month.
In a video posted to X, CEO Linda Yaccarino stated, “The evidence and facts are on our side. They conspired to boycott X, which threatens our ability to thrive in the future. That puts your global Town Square — the one place that you can express yourself freely and openly — at long-term risk.”
Elon Musk also weighed in, encouraging any company systematically boycotted by advertisers to file lawsuits, suggesting potential “criminal liability” under the Racketeer Influenced and Corrupt Organizations (RICO) Act, which targets organized crimes.
The lawsuit references a July 10th report from the House Judiciary Committee about the WFA, highlighting concerns over the WFA and GARM’s “collusive conduct to demonetize disfavored content.” House Judiciary Chair Jim Jordan (R-OH) recently sent letters to 40 companies involved with GARM, questioning their reasons for boycotting right-wing outlets like The Joe Rogan Experience, The Daily Wire, Breitbart, or Fox News. Musk had previously threatened legal action against advertisers participating in the alleged boycott.
The success of X’s lawsuit remains uncertain, as Techdirt points out that the First Amendment protects advertisers’ ability to choose where to advertise. The ad tech watchdog group Check My Ads also supports advertisers’ right “to not send money to a platform that promotes hate and conspiracies.”
X is seeking a court declaration that the advertisers’ actions are illegal and is asking for damages to be determined at trial. This lawsuit adds to a series of legal actions initiated by Musk, including a recent lawsuit against OpenAI over claims of manipulation.
