Brands
Wake-up call for social media platforms as brands boycott in droves
NEW DELHI: Social media platforms, which were a boon for brands, seem to have turned into a bane now. After consumer product giant Unilever announced that it will halt advertising on social media platforms such as Facebook, Instagram and Twitter in the US for the rest of the year, due to the rising hate speech and upcoming election period, Coca-Cola, which advertises heavily on digital media, has also suspended advertising on social media for at least 30 days.
"There is no place for racism in the world and there is no place for racism on social media," said The Coca-Cola Company chairman and CEO James Quincey.
Should social media companies worry about the rising boycott? TRA founder and CEO N Chandramouli believes that the #BlackLivesMatter protests compelled brands to take a closer look at things they often considered “normal.”
“Coca-Cola and Unilever are leaders not only in terms of the advertising spends but also thought-leaders such that other brands will see and follow. Social media has always been a little free of scrutiny with the indiscriminate show of ads with irrelevant content and also with content that the brand may not want to associate with. Social media has to turn its technology to deliver ads more contextually, with the advertiser deciding what type of content they do not want to be seen with," he says.
The boycott has had a ripple effect with other brands coming on board to boycott including Diageo, Lululemon, Starbucks, Verizon. Levi's and Dockers have also restricted themselves from advertising on Facebook and Instagram till July. Hershey’s has also decided to join hands with #stophateforprofit; the brand will slash its advertising budget on Facebook. American Honda has also decided to withhold its advertising on Facebook and Instagram for Honda and Acura, to stand with people against hate and racism.
Even P&G chief brand officer Marc Pritchard said that the company would be conducting a comprehensive review of where it was advertising.
Tidal7 co-founder and chief creative officer KS Chakravarthy explains, “This is no longer about a few brands or a few hundred million in revenues. It is a wakeup call for all media and particularly for those depending on an online audience. Crossing the line can spark off a whole series of adverse reactions that can very quickly feed off one another to escalate into a universal movement. And it is this symbiotic growth of outrage that Facebook should be seriously worried about.”
Unilever has more than two dozen brands in its kitty including popular ones like Dove, Lipton and Breyers. According to marketing analytics firm Pathmatics, Unilever spent more than $11.8 million in the US this year on Facebook. While it quit social media, the consumer giant will maintain its planned media investment by shifting to other media.
Consults Inc founder Harish Bijoor shares, “Brands are getting sensitive in these sensitive times as to where they advertise. Coca-Cola and Unilever's action is part of this sentiment translating into action. Hate speech in the time of social angst is something responsible brands want to avoid. Social media will need to realign its content policy if it wants sponsors to stay with it in terms of advertising.”
Following the resentment, Facebook CEO Mark Zuckerberg, on Friday, said that the company would implement new policies to connect people with authoritative information about voting and fight hate speech. However, he did not directly address the advertisers boycott.
As per media reports, Facebook brought in $69.7 billion in ad revenue globally through its millions of advertisers last year. The company said earlier this year it has more than eight million advertisers.
Brand-nomics MD Viren Razdan says, “For Facebook, it’s really a time to put their transparency out to test, it’s important for them to clarify that their self-created code of conduct does not lean towards any business goals.”
Chakravarthy says, “Social media does have a real responsibility and unfortunately, they are not stepping up, at least not enough, in many people's opinion, including their own employees.”
The list of brands boycotting social media platforms, especially Facebook, is likely to increase and unless they take the issue seriously, may incur severe losses.
(With inputs from Mansi Sharma)
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
