X's legal action forces ad group to shut down: Report
The Global Alliance for Responsible Media (GARM), a prominent coalition of advertisers, has "discontinued" activities two days following a lawsuit from Elon Musk's X, according to Business Insider. The organization was established in 2019 by the World Federation of Advertisers (WFA), with an objective to prevent advertising on social media platforms that didn't meet certain safety standards. GARM was accused by X of orchestrating an advertiser boycott against Twitter, which Musk later acquired and rebranded as X.
GARM's dissolution and X's legal actions
The dissolution of GARM occurred shortly after X filed its lawsuit. The organization was renowned for its guidelines on brand safety controls, which assisted advertisers in avoiding harmful content like hate speech or violent material alongside their ads on social media platforms. This lawsuit is part of a series of legal actions by Musk against entities he perceives as threats to X's advertising business. Musk previously sued Media Matters to silence moderation criticism against X.
Musk's stance on advertising
Musk has previously shown disdain for advertisers. In a past interview with Andrew Ross Sorkin, he stated, "I hope they stop. Don't advertise." He further added, "If somebody is going to try to blackmail me with advertising, blackmail me with money, go f_ yourself." Since Musk's acquisition and renaming of Twitter as X, the platform has seen significant drop in advertising revenue due to his lenient content moderation approach, and reported interaction with accounts promoting conspiracy theories and racist views.
WFA's response and industry impact
Despite GARM's dissolution, the WFA plans to contest the lawsuit. WFA CEO Stephan Loerke informed members that while GARM is a non-profit with limited resources, they intend to fight the legal action. The disbandment of GARM is anticipated to significantly affect the advertising industry. Lou Paskalis, a former ad executive who now runs AJL Advisory, described Musk's decision to sue GARM as "extraordinary" and predicted that it will have a "chilling effect" on how the industry operates in future.
