Global Alliance for Responsible Media Discontinued Amid Legal Dispute
The World Federation of Advertisers (WFA) has announced the discontinuation of its Global Alliance for Responsible Media (GARM) initiative just days after being sued by social media platform X, formerly known as Twitter. The lawsuit, filed by X, claims that GARM played a central role in organizing a large-scale advertiser boycott following Elon Musk’s acquisition of the platform in 2022.
X’s Allegations and Legal Action
In the lawsuit filed in a Texas federal court, X accused the WFA, along with member companies Unilever, Mars, CVS Health, and Ørsted, of conspiring to withhold billions of dollars in advertising revenue from the platform. X contends that this alleged conspiracy violated antitrust laws and significantly harmed the company’s financial standing. The suit also draws on recent findings from the Republican-led U.S. House Judiciary Committee to bolster its claims.
GARM’s Response and Disbandment
The WFA responded to the lawsuit by announcing the discontinuation of GARM on Friday. In a statement, the organization expressed disappointment that the recent allegations had “misconstrued” the purpose and activities of GARM, leading to a “distraction” that drained the initiative’s resources and finances. The WFA emphasized that GARM’s mission was to enhance transparency in social media ad placements and to help advertisers avoid inadvertently supporting harmful and illegal content.
Impact on Digital Safety and Advertising
GARM was founded in 2019 and operated with a small team of two people. Despite its size, the initiative reportedly made significant strides in reducing harmful ads, lowering the percentage of such content from 6.1% in 2020 to 1.7% in 2023, according to the WFA. The group’s work focused on providing voluntary tools to advertisers to ensure their ads did not appear alongside inappropriate content on social media platforms.
The Broader Context
The lawsuit centers on events that occurred shortly after Musk’s $44 billion acquisition of Twitter in October 2022. X alleges that the boycott organized through GARM contributed to a significant decline in advertising revenue during the early days of Musk’s ownership. The case does not address a more recent dispute from November 2023, when advertisers left the platform over concerns about their ads appearing next to pro-Nazi content and hate speech. Musk later labeled these advertisers as engaging in “blackmail” but has since attempted to walk back those comments.
