Verizon Communications VZ is suspending advertising on Facebook Inc FB and Instagram in support of a campaign to curtail hate speech on the social media platform.
What Happened
Verizon became the latest entity to come out in support of the “Stop Hate for Profit” campaign backed by multiple civil rights groups in the United States, reported Reuters.
A Verizon spokesperson told the newswire, “We’re pausing our advertising until Facebook can create an acceptable solution that makes us comfortable.”
The social media giant responded to the campaign by saying it is working with civil rights organizations.
Carolyn Everson, vice president of global business for Facebook, said, “We respect any brand’s decision and remain focused on the important work of removing hate speech and providing critical voting information.”
On Thursday, Meg Graham, a CNBC advertising and marketing reporter, citing Pathmatics data, tweeted on the financial impact on Facebook of Verizon’s decision to halt advertising. Pathmatics is a marketing analytics company.
Why It Matters
Stop Hate for Profit accuses Facebook of allowing “incitement to violence against protestors fighting for racial justice in America.”
On Tuesday, ice cream maker Ben and Jerry’s announced support for the campaign, backed by NAACP and AFL, by suspending Facebook advertising.
Other companies that have joined the growing chorus against hate speech on Facebook include Patagonia, VF Corp VFC owned The North Face and Upwork, a freelance platform.
Price Action
On Thursday, Verizon shares closed 0.65% higher at $54.28.
Facebook shares traded 0.92% lower at $233.50 in the after-hours session on Thursday. The shares had closed the regular session 0.71% lower at $235.68.
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