The parallel economy is fighting back against big tech's potential to take away the American dream in a heartbeat.

Anti-woke entrepreneurs are looking for alternatives to tech companies that prioritize politics over businesses.

The parallel economy is fighting back against big tech's potential to take away the American dream in a heartbeat.
The parallel economy is fighting back against big tech's potential to take away the American dream in a heartbeat.

The rise of political polarization has led to the emergence of a parallel economy for consumers who are disillusioned with progressive companies. However, many "anti-woke" businesses claim that tech giants are placing obstacles in their way that their competitors do not face.

Jennifer Sey, CEO of XX-XY Athletics, stated that all brands and businesses are being limited, but brands promoting left-wing talking points are not restricted in the same way.

Jennifer Sey
Jennifer Sey, CEO of the pro-women apparel company XX-XY Athletics, says a Meta advertising tool disproportionately leaves out influencers whose audiences are likely to be interested in her products. Critics say it's just one example of how Big Tech makes it more difficult for so-called parallel economy brands to compete. (XX-XY Athletics)

Business owners have experienced issues with payment processors freezing funds, social media companies revoking or censoring advertisements, and broadcasters requiring political disclaimers on commercials, according to Sey and other business owners who spoke to Planet Chronicle Digital. Despite this, tech companies have denied targeting anyone over political beliefs.

"Business owner James Staake, who had more than $100,000 in funds frozen by PayPal, stated that big tech has too much control over the American dream and individuals' pursuit of a better life, and that they can take it away in a heartbeat."

Parallel economy grows interest in ‘cancel-proof’ payment processors

For years, Your American Flag Store, owned by Staake, has sold handcrafted, solid-wood American flags through its online store, which is run on Shopify, and uses PayPal as its payment processor.

The online store began to remove his Christian cross flags, first responder flags, and conservative-oriented products around late 2020, he stated.

President Trump's products were removed from Shopify's website due to community standards violation, according to the company's CEO. Shopify did not respond to requests for comment.

In early 2021, Staake discovered that their social media advertising privileges had been revoked, leading to a significant decrease in website traffic and sales.

After a TV interview about the issue on Feb. 1, 2021, Staake experienced an immediate surge in sales. However, the day after the interview, PayPal put a hold on all funds in Staake's account, according to a demand letter filed by attorney Harmeet Dhillon of the Center for American Liberty on Staake's behalf.

PayPal froze $111,000 of our money and stated that they would reevaluate the situation in six months and provide an update on their decision, as stated by Staake to Planet Chronicle Digital.

Staake said PayPal released his money in small chunks over the next year.

James Staake on Fox & Friends
James Staake appeared on Fox & Friends on Dec. 5, 2021, to talk about his struggles with PayPal. Staake said the company released the rest of his funds shortly after the interview. (Planet Chronicle)

A PayPal representative stated that the company cannot discuss particular accounts due to privacy issues, but emphatically denied that vendors are targeted based on their beliefs.

"As the largest online payments platform, PayPal has a responsibility to manage customer risk to prevent fraud, scams, and other financial risks. The spokesperson wrote in an email that the company takes this process very seriously and understands the impact that account holds, limitations, or other actions may have on small businesses. The spokesperson also stated that accounts are never placed on hold for political reasons."

In 2022, PayPal faced criticism over allegations of censorship after proposing a user agreement change that threatened to fine users up to $2,500 for promoting misinformation.

In 2021, PayPal froze over $1 million in sales of Erik Finman's Freedom Phone, refunding $800,000 to customers and holding another $450,000 for nearly a year.

WATCH: BUSINESS OWNERS SLAM BIG TECH HURDLES:

Business owner: Big tech can take American dream 'away in a heartbeat'

PayPal places limitations on accounts with high seller performance risk, such as an unusually high number of buyer disputes or refund requests, to protect customers from fraud or risk.

The Freedom Phone received harsh criticism upon release and has an F rating with the Better Business Bureau.

After a three-year dispute with PayPal, Staake now employs Second Amendment Processing, a credit card processor that advocates for freedom of speech and does not engage in censorship based on the message being conveyed, even if it is offensive or hateful.

This year, PublicSquare introduced its own "cancel-proof payment processing," as CEO Michael Seifert previously stated to Planet Chronicle Digital.

The emergence of alternative payment processors is a game changer, according to Staake.

Businesses that don't conform to the party line on social media and broadcasts are at a disadvantage, according to the CEO.

As brand president for Levi Strauss & Co., Sey formerly worked for the company. However, she was let go due to her outspoken comments on COVID-19 policies. This spring, she launched XX-XY, a brand that sells leggings, shorts, fleeces, and shirts with slogans such as "Team women" and "save women's sports."

Chloe Cole, Paula Scanlan, and Riley Gaines are among the brand ambassadors for their brand.

Despite having nearly half a million Instagram followers, Gaines did not appear when they attempted to use a Meta advertising tool to target their ads towards his likely fans, according to Sey.

"We began exploring other influencers who may have followers who would be highly interested in our brand," Sey stated. "Unfortunately, we are unable to target any of them. It seems as though they do not exist in the advertising tool."

Riley Gaines testifying to Congress on left, Megan Rapinoe running with arms wide on right
Former swimmer and XX-XY Athletics brand ambassador Riley Gaines, left, is not available for audience targeting on a Meta advertising tool, but soccer star Megan Rapinoe is. XX-XY CEO Jennifer Sey says it's just one example of how people and businesses that don't "toe the party line" are "handicapped" by big tech. (Getty Images)

They could target Megan Rapinoe, a soccer star who has spoken out in support of transgender athletes in women's sports.

Any brand that opposes gender ideology or any woke ideology will be disadvantaged, as Sey stated. The only option is to conform or face business limitations.

Sey stated that XX-XY ran through a list of Christian influencers, but none appeared. She also mentioned that President Biden had used the tool earlier this year, but a Meta spokesperson stated that religious figures and politicians are not permitted to use it. However, when Planet Chronicle Digital tested the tool in August, neither Biden nor other politicians appeared.

"In our policies, we make it clear that we do not permit the targeting of sensitive topics, including public figures associated with religion or politics, regardless of their political affiliation. Our objective is to assist businesses in reaching their audiences effectively while taking into account feedback from civil rights experts and policymakers on how to prevent advertisers from misusing our targeting tools."

‘Aggressively left-wing’ advertising spurs the rise of the ‘parallel economy’

The tool's results appear more random outside of religion and politics.

Colin Kaepernick, who gained notoriety for kneeling during the National Anthem, is available, but NBA player Jonathan Isaac, who stood during his teammates' kneeling, is not. Additionally, neither Kansas City Chiefs kicker Harrison Butker, who faced criticism for his commencement speech at Benedictine College, nor UFC fighter Sean Strickland, known for his vulgar rants against Canadian Prime Minister Justin Trudeau, Bud Light, and other controversial figures and topics, are available.

Enes Kanter Freedom, Kyrie Irving, Kanye West, Kid Rock, and J.K. Rowling are all available, with the latter frequently facing criticism for her views on biological sex.

The tool does not include conservative commentators like Ben Shapiro and Sean Hannity, nor does it include liberal pundits like Rachel Maddow and Joy Behar (though her View co-host Whoopi Goldberg is included under the actor category).

According to Roberts, targeting options exist when topics meet a certain threshold of engagement, as determined by Meta's machine-learning process, but follower count alone does not determine whether a public figure will be available for targeting.

Jonathan Isaac, Sean Strickland and Harrison Butker
NBA player Jonathan Isaac, left, made headlines in 2020 for standing during the National Anthem while his teammates knelt in protest. He doesn't show up under Meta's audience targeting tool, nor do UFC fighter Sean Strickland, center, or NFL kicker Harrison Butker, right. (Getty Images, Zuffa LLC and WireImage)

TikTok's advertising privileges were permanently suspended in March due to "offensive content" in XX-XY, as stated in a notice sent by the company.

The advertisement showcased young female athletes discussing the significance of safeguarding girls' sports, with the tagline "take action." The brand was presented with the choice to modify the advertisement or challenge the prohibition.

TikTok did not respond to requests for comment at the time, and the company has not responded to renewed requests this month.

This summer, when XX-XY attempted to run the same advertisement on TV, Sey claimed that Comcast rejected it unless it included a "This ad is funded by..." disclaimer commonly used in political messages.

In more than 30 years of running TV ads for other businesses, Sey has never encountered such a requirement. Big companies have utilized social topics like women in sports, #MeToo, and discrimination in their advertisements without including a disclaimer.

Meredith Fitzgerald, a spokesperson for Comcast as a cable provider, stated that they are obligated to adhere to the FCC's sponsorship ID requirements for advertisements they carry.

These incidents demonstrate a double standard that should be a concern for anyone who values free markets, free speech, and open debate, as Sey sees them.

"Consumers should look harder for brands that align with their values," she advised. "We are being blocked from finding you."

Jennifer Sey with brand ambassadors Paula Scanlan (L) and Riley Gaines (R)
Jennifer Sey with brand ambassadors Paula Scanlan, left, and Riley Gaines, right. (XX-XY Athletics)

The TikTok ban led to XX-XY's best sales day yet, according to Sey.

"She stated that people are highly passionate about this cause, as they are tired of the lies and want women's sports to be protected exclusively for women and girls."

by Hannah Ray Lambert

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