Please subscribe to Fox News to access this content
You’ve reached the maximum number of articles. To continue reading, please log in or create a free account.
By entering your email address and pressing “Continue”, you agree to Fox News’ Terms of Use and Privacy Policy, including the Financial Incentive Notice.
Please enter a valid email address.
Having problems? Click here.
Political polarization has created a so-called parallel economy among consumers fed up with progressive companies, but many “anti-woke” companies complain that Big Tech is putting up obstacles in their way that others don’t.
“These brands and companies are being restricted in the same ways that brands with left-leaning ideologies aren’t being restricted,” said Jennifer Say, CEO of XX-XY Athletics, a women’s advocacy apparel company.
Jennifer Sey, CEO of women’s apparel company XX-XY Athletics, said meta-advertising tools unfairly exclude influencers whose audiences might be interested in her company’s products. Critics say it’s just one example of how big tech is making it harder for so-called parallel economy brands to compete. (XX-XY Athletics)
‘Disrespectful’ and ‘aggressively left-wing’ ads fuel the growth of the parallel economy
Say and other business executives told Fox News Digital that these restrictions could include payment processors freezing company funds, social media companies canceling or censoring ads and requiring broadcasters to include political disclaimers on their commercials, but the tech companies deny targeting anyone because of their political beliefs.
“What’s happened to the big tech companies is they control the American dream and individuals who are trying to pursue a better life,” said James Stark, a business owner who previously had more than $100,000 frozen by PayPal. “They can take your money in an instant.”
The parallel economy drives interest in “non-cancelable” payment processors
Staake’s business, Your American Flag Store, sells handmade solid wood American flags, and for many years he used Shopify to run his online store and PayPal to process payments.
However, flags featuring Christian crosses, first responder flags and conservative products began disappearing from online stores in the latter half of 2020.
“Obviously, anything to do with President Trump, [Shopify] “Having such an item on our website violates our community rules, so it has been removed,” he said. Shopify did not respond to a request for comment.
Around January 2021, Stark noticed the store’s social media advertising privileges had also been suspended, and website traffic plummeted, and with it, sales.
Stark then saw an immediate surge in sales after he was interviewed on television about the issue on February 1, 2021. But the day after the interview, PayPal placed a hold on all funds in Stark’s account, according to a demand letter filed on Stark’s behalf by Harmeet Dhillon, an attorney for the Center for American Freedom.
“[PayPal] “The department has frozen $111,000 in funds and said they will reassess in six months and let us know their decision,” Stark told Fox News Digital.
Stark said PayPal released the funds bit by bit over the next year.
James Stark appeared on Fox & Friends on December 5, 2021 to talk about his battle with PayPal. Stark said the company released the remainder of his funds shortly after the interview. (Fox News)
Digital privacy advocates say PayPal ban is a form of censorship and puts some businesses at risk
A PayPal spokesman said the company couldn’t comment on specific accounts due to privacy concerns, but firmly denied claims that vendors are being targeted because of their ideology.
“As the largest online payments platform, PayPal has a responsibility to manage customer risk to prevent fraud, fraudulent activity and other financial risks,” a spokesperson said in an email. “Account holds, restrictions and other actions allow us to conduct appropriate due diligence to protect both buyers and sellers. We also understand the impact these can have on small businesses and take this process very seriously. Accounts are never held for political reasons.”
PayPal has faced intense criticism over allegations of censorship, after the company quickly backtracked on proposed changes to its terms of service in 2022 that would have threatened fines of up to $2,500 if users used the service to “spread misinformation.”
And similar to Stark’s experience, conservative entrepreneur Eric Finman said PayPal froze more than $1 million in sales from his Freedom Phone in 2021, forced $800,000 in refunds to customers, and withheld another $450,000 for nearly a year.
Watch: Business owners criticize big tech companies for their hurdles:
When asked about Finman last year, the company declined to comment but said, “To protect our customers from fraud and risk, PayPal may impose certain restrictions on an account if a merchant’s track record indicates a high risk to us or our customers, including an unusually high number of buyer disputes or refund requests.”
The Freedom Phone has received harsh reviews since its launch, with the company receiving an F rating from the Better Business Bureau.
Three years after his PayPal stunt, Stark now works with Second Amendment Processing, a credit card processor whose mission statement reads: “We cannot simply choose to censor based on the message being sent, even if that message is offensive or hateful.”
Online marketplace Public Square also launched its own “irreversible payment processing” this year, CEO Michael Seifert previously told Fox News Digital.
“This is absolutely a game changer,” Stark said of the rise of alternative payment processors.
CEO says social media and broadcasters are “disadvantaging” companies that “don’t toe the party line”
Say, a former brand president at Levi Strauss & Co. who said she was pushed out of the company for comments she made about coronavirus preparedness, launched XX-XY this spring, selling leggings, shorts, fleece and shirts with slogans like “Team Women” and “Save Women’s Sports.”
The company’s brand ambassadors include transgender Chloe Cole, Paula Scanlan, a former University of Pennsylvania swimmer and teammate of transgender swimmer Leah Thomas, and 12-time NCAA All-American swimmer Riley Gaines.
But when they tried to use meta ad tools to target ads to potential Gaines fans, she didn’t show up, even though she has nearly 500,000 Instagram followers, Sey said.
“We started looking at other influencers who might have followers who are very interested in our brand,” Seyi said. “We can’t target any of them. It’s as if they don’t exist in our advertising tools.”
Former swimmer and XX-XY Athletics brand ambassador Riley Gaines (left) won’t be audience targeted through Meta’s ad tools, but soccer star Megan Rapinoe will be. XX-XY CEO Jennifer Say says this is just one example of how people and companies that “don’t toe the party line” are being “penalized” by big tech companies. (Getty Images)
Riley Gaines never thought saying men and women are different would make her an influencer, but it turned out that way.
But soccer star Megan Rapinoe, who has been vocal in support of transgender athletes in women’s sports, could also be a target.
“It’s really perverse because it puts brands at a disadvantage that resist this gender ideology or, for lack of a better word, any kind of woke ideology really. So if you don’t toe the party line, your business is at a disadvantage,” Say said.
Say said XX-XY also looked at a long list of Christian influencers, but none showed up. He said President Biden appeared in the tool earlier this year, but when reached for comment, a Meta spokesperson said religious figures and politicians are not included in the targeting tool. Biden and other politicians did not appear when Fox News Digital tested the targeting tool in August.
“Our policies are clear that we do not permit the targeting of sensitive topics, such as religious or politically-charged public figures, regardless of political stance,” spokesperson Daniel Roberts said in an email. “Our goal is to help companies reach their audiences effectively, while balancing feedback from civil rights experts and policymakers on how to prevent advertisers from misusing our targeting tools.”
See more FOX News Digital Originals
Outside of religion and politics, the results of this tool seem to be a bit more random.
Colin Kaepernick, who caused controversy by kneeling during the national anthem in 2016, is eligible to compete, but NBA player Jonathan Isaac, who stood while his teammates kneeled, is not. Neither is Kansas City Chiefs kicker Harrison Butker, who drew progressive backlash for his commencement speech at Benedictine University, nor is UFC fighter Sean Strickland, known for his profanity-laced rants against Canadian Prime Minister Justin Trudeau, Bud Light and other high-profile figures and topics.
But Enes Kanter Freedom, whom Slate magazine called “the MAGA world’s most beloved NBA player,” is single, as are Dallas Mavericks point guard Kyrie Irving, rapper Kanye West, Trump-supporting singer Kid Rock and J.K. Rowling, the “Harry Potter” author who has frequently come under fire for her comments about biological sex.
Conservative commentators like Ben Shapiro and Sean Hannity don’t appear on the tool, while liberal pundits like Rachel Maddow and Joy Behar don’t appear either (though her The View co-star Whoopi Goldberg does appear in the acting category).
Roberts said the targeting option becomes available when a topic meets a certain engagement threshold, which is determined by Meta’s machine learning process; follower count alone doesn’t determine whether a public figure is eligible for targeting.
NBA player Jonathan Isaac (left), who made headlines in 2020 for standing during the national anthem while his teammates knelt in protest, doesn’t appear in Meta’s audience targeting tools, nor do UFC fighter Sean Strickland (center) and NFL kicker Harrison Butker (right). (Getty Images, Zuffa LLC, WireImage)
UFC champion Sean Strickland slams reporter and Justin Trudeau after questioning about past LGBT comments
The targeting issue is just the latest hurdle for XX-XY: When it first launched in March, TikTok permanently suspended its advertising rights for XX-XY because it featured “offensive content,” according to a notice sent by the company.
The ad in question featured young female athletes talking about the importance of protecting women’s sport, with the tagline “Stand up”. Brands were given the option to “fix” the ad or appeal the ban.
TikTok did not respond to a request for comment at the time, and did not respond to a new request this month.
And when XX-XY tried to run the same ad on television this summer, Comcast refused to air it without the disclaimer that typically accompanies political messaging: “This ad is paid for by …” Mr. Say said.
Say said he had never encountered such a request in his more than 30 years of running TV ads for other companies, adding that big companies have used social issues such as women in sports, #MeToo and discrimination in their TV ads without disclaimers.
“As a cable provider, Comcast is bound by the FCC’s sponsor ID requirements for the ads we place,” spokeswoman Meredith Fitzgerald said when reached for comment.
But Say believes these cases are evidence of a double standard that should concern anyone who values free markets, free speech and open debate.
“I would encourage consumers to look for brands that align with their values,” she said. “You’re going to have to look a little harder because we’re blocked from finding you.”
Jennifer Say with brand ambassadors Paula Scanlan (left) and Riley Gaines (right). (XX-XY Athletics)
Click here to get the FOX News app
The social media roadblock has an upside: Just as flag sales soared after Stark spoke out about his experience with censorship, XX-XY also saw its sales reach an all-time high after the TikTok ban, Say said.
“I think people are really passionate about this cause,” she said. “People are tired of the lies. They want to see women’s sports protected and just for women and girls.”
