A spokesperson for the World Federation of Advertisers declined to comment on the lawsuit.
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GARM members “agree to adopt, implement, and enforce GARM’s brand safety standards, including by withholding advertising from social media platforms deemed by GARM to be non-compliant with the brand safety standards,” the lawsuit states. After GARM publicly called on X, then known as Twitter, to comply with its brand safety standards after Musk’s takeover, many GARM-affiliated companies “abruptly discontinued or sharply curtailed their purchases of advertising,” the suit alleges.
However, GARM notes on its website that it “does not interfere with a member’s decision as to whether or not to invest advertising resources on a particular website or channel.”
The lawsuit seeks to prevent GARM from continuing to make recommendations regarding advertising on X, as well as unspecified monetary damages.
It’s not the first time X has filed a lawsuit related to its declining ad business. Last year, it sued the Center for Countering Digital Hate, alleging the nonprofit group violated its terms of service when it studied, and then wrote about, hate speech on the platform and blamed it for driving away advertisers. A federal judge tossed the suit in March, blasting it as an attempt to punish CCDH for protected speech.
X also sued the progressive watchdog group Media Matters over its analysis highlighting antisemitic and pro-Nazi content on X — a report that appeared to play a significant role in a massive and damaging brand revolt late last year. The suit accuses Media Matters of distorting how likely it is for ads to appear beside extremist content on X. Media Matters President Angelo Carusone called the filing a “frivolous lawsuit.” The case is set to go to trial next year.
