Business owner: Big tech can take American dream 'away in a heartbeat.' How the parallel economy fights back

Political polarization has given rise to a so-called parallel economy for shoppers sick of progressive companies, but many "anti-woke" businesses say tech giants are putting hurdles in their path that don't exist for their counterparts.

"All of these brands and businesses are being limited in a way that brands who tout left-wing talking points are not limited," Jennifer Sey, CEO of the pro-women apparel company XX-XY Athletics, said.

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)

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Those limits include payment processors freezing businesses' funds, social media companies revoking or censoring advertisements, and broadcasters requiring political disclaimers on commercials, Sey and other business owners told Fox News Digital, though tech companies have denied targeting anyone over political beliefs.

"That's what's happened with big tech is they have that much control over the American dream and individuals just trying to pursue a better life for themselves," business owner James Staake, who previously had more than $100,000 in funds frozen by PayPal, said. "They can take it away in a heartbeat."

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

Staake's business Your American Flag Store sells handcrafted, solid-wood American flags. He used Shopify to run his online store and PayPal as his payment processor for years.

But his Christian cross flags, first responder flags and conservative-oriented products started disappearing from the online store around late 2020, he said. 

"Of course, anything having to do with President Trump, [Shopify] pulled down, citing that it went against their community standards to have products like that on our website," he said. Shopify did not respond to requests for comment.

Around January 2021, Staake realized the store's social media advertising privileges had also been cut off. Their website traffic — and, subsequently, sales — tanked.

Then Staake experienced an immediate surge in sales after a TV interview about the issue on Feb. 1, 2021. But 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 said that we'll revisit this in six months and let you know what we decided," Staake told Fox News Digital.

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

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. (Fox News)

PAYPAL'S BANS ARE A FORM OF CENSORSHIP, PUT SOME BUSINESSES AT RISK, DIGITAL PRIVACY ADVOCATE SAYS

A PayPal spokesperson said the company could not comment on specific accounts due to privacy concerns, but firmly denied that vendors are targeted over their ideology.

"As the largest online payments platform, PayPal has the responsibility to manage customer risk to prevent fraud, scams, and other financial risks," the spokesperson wrote in an email. "Account holds, limitations or other actions allow us to do the proper due diligence to protect both buyers and sellers, and we understand the impact they may have on small businesses and take this process very seriously. Accounts are never placed on hold for political reasons."

PayPal has faced a deluge of criticism over alleged censorship. The company quickly backtracked on a proposed user agreement change in 2022 that threatened to fine users up to $2,500 if they use the service to "promote misinformation."

And, similar to Staake's experience, conservative entrepreneur Erik Finman said PayPal froze more than $1 million in sales of his Freedom Phone in 2021, forcibly refunding $800,000 to customers and holding another $450,000 for nearly a year.

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The company wouldn't comment on Finman's case when asked about it last year, but said "to protect customers from fraud or risk, PayPal can place certain limitations on accounts where seller performance indicates a high risk to the company or customer, such as an unusually high number of buyer disputes or refund requests."

Freedom Phone faced brutal reviews upon its release and the company has an F rating with the Better Business Bureau. 

Three years after his fracas with PayPal, Staake now uses Second Amendment Processing, a credit card processor whose mission statement reads in part, "You cannot simply pick and choose censorship based on the message that’s being spoken, even if that message is unsavory or underlined with hate."

The online marketplace PublicSquare also launched its own "cancel-proof payment processing" this year, CEO Michael Seifert previously told Fox News Digital.

"It's an absolute game changer," Staake said of the rise of alternative payment processors.

Social media, broadcasters ‘handicapped’ businesses that don't ‘toe the party line,’ CEO says

Sey formerly worked as brand president for Levi Strauss & Co., but she's said she was forced out of the company for her outspoken remarks on COVID-19 policies. This spring she launched XX-XY, which sells leggings, shorts and fleeces, as well as shirts bearing slogans like "Team women" and "save women's sports."

Their brand ambassadors include detransitioner Chloe Cole; Paula Scanlan, a former University of Pennsylvania swimmer and teammate of transgender swimmer Lia Thomas; and 12-time NCAA All-American swimmer Riley Gaines.

But when they tried to use a Meta advertising tool to target their ads toward likely fans of Gaines, Sey said Gaines didn't show up, despite having nearly half a million Instagram followers.

"We started to investigate other influencers who might have followers that would be very interested in our brand," Sey said. "We cannot target any of them. It's as if they don't exist in the advertising tool."

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)

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

"It's really pretty twisted because it handicaps any brand that pushes back on this gender ideology or in fact, any sort of woke ideology, for lack of a better phrase. So you either have to kind of toe the party line or your business is handicapped," Sey said.

Sey said XX-XY ran through a long list of Christian influencers as well, but none showed up. She said President Biden appeared on the tool earlier this year, but when reached for comment, a Meta spokesperson said religious figures and politicians are not allowed in the targeting tool. Biden — and other politicians — did not show up in August when Fox News Digital tested the targeting tool.

"We clearly state in our policies that we do not allow targeting of sensitive topics, including public figures related to religion or politics — regardless of political affiliation," spokesperson Daniel Roberts wrote in an email. "Our goal is to help businesses effectively reach audiences, while balancing feedback from civil rights experts and policymakers on ways to prevent advertisers from abusing our targeting tools."

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Outside religion and politics, the tool's results seem a bit more random.

Colin Kaepernick, who made waves beginning in 2016 for kneeling during the National Anthem, is available, but NBA player Jonathan Isaac, who stood while his teammates knelt, is not. Neither are Kansas City Chiefs kicker Harrison Butker, who faced progressive backlash for his commencement speech at Benedictine College, or UFC fighter Sean Strickland, known for his profane rants against Canadian Prime Minister Justin Trudeau, Bud Light and other hot-button people and topics.

However, Enes Kanter Freedom, dubbed "MAGA world's favorite NBA player" by Slate, is available. So are Dallas Mavericks point guard Kyrie Irving, rapper Kanye West, Trump-supporting singer Kid Rock, and "Harry Potter" author J.K. Rowling, who frequently comes under fire for her comments on biological sex.

And while conservative commentators like Ben Shapiro and Sean Hannity are absent from the tool, so are liberal pundits like Rachel Maddow and Joy Behar (though her View co-host Whoopi Goldberg shows up under the actor category).

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

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)

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The targeting troubles are just the most recent hurdle for XX-XY. When it first launched in March, TikTok permanently suspended its advertising privileges because XX-XY featured "offensive content," according to a notice the company sent.

The ad in question featured young female athletes talking about the importance of protecting girls' sports with the tagline "stand up." The brand was given the option to "revise" the advertisement or appeal the ban. 

TikTok did not respond to requests for comment at the time, nor renewed requests this month.

And this summer, when XX-XY tried to run the same ad on TV, Sey said Comcast refused to run it without a "This ad is paid for by…" disclaimer usually associated with political messages.

Sey said she has never run into such a requirement in more than 30 years of running TV ads for other businesses, and that big companies have used social topics like women in sports, #MeToo and discrimination in television advertisements without the disclaimer.

"As a cable provider, Comcast is bound by the FCC’s sponsorship ID requirements for ads we carry," spokesperson Meredith Fitzgerald wrote when reached for comment.

But Sey sees these incidents as proof of a double standard that should concern anyone who cares about free markets, free speech and open debate.

"I would just encourage consumers to seek out brands that align with their values," she said. "You're going to have to look a little harder because we are being blocked from finding you."

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

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Sometimes the social media hurdles have a silver lining. Just like flag sales skyrocketed for Staake after he shared his story of censorship, XX-XY had its best sales day yet after the TikTok ban, Sey said.

"I think people are really passionate about this cause," she said. "They’re tired of the lies. They want to see women's sports protected and for women and girls only."