Welcome to Inc.’s 1 Smart Business Story! Given the glaring news coming out of Minneapolis over the last couple weeks, we are taking a closer look at how companies are interacting with federal agencies and handling customer backlash. 

Vancouver-based social media management platform Hootsuite has drawn criticism after reports surfaced that it provides services to U.S. immigration agencies, including Immigration and Customs Enforcement (ICE) and the Department of Homeland Security, a contract that has the potential to reach $2.8 million in value. 

Customers and industry leaders have taken to social media to express their frustrations, especially given ICE’s polarizing reputation and Hootsuite’s previous controversy over a similar contract in 2020. 

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BY ANNABEL BURBA, EDITORIAL ASSISTANT

Several thought leaders have denounced the company’s work with ICE online.

Customers are up in arms after learning that Hootsuite reportedly provides U.S. immigration agencies, which are currently under fire for the killings of two Minneapolis residents, with social media management services.

The Vancouver-based company began working with the U.S. Department of Homeland Security’s Customs and Border Protection agency in July 2024, according to Canadian publication Business in Vancouver. Their contract, which spans until 2029, has the potential to reach $2.8 million in value, according to The Globe and Mail.

Hootsuite reportedly used that relationship to land another deal with the Department of Homeland Security—a $95,000 pilot project with Immigration and Customs Enforcement—last September, per The Globe and Mail. An internal company email obtained by the publication reportedly described this project as a “‘Trojan Horse Deal’ that could turn into a seven-figure contract.”

The news of Hootsuite’s relationship with these agencies came as a surprise to many, since the firm went through a similar controversy in 2020 when an employee revealed it had signed a contract with ICE.

“Over the last 24 hours, there has been a broad emotional and passionate reaction from our people,” Tom Keiser, Hootsuite’s former CEO, said in a statement at the time. “The decision has created a divided company, and this is not the kind of company I came to lead. I—and the rest of the management team—share the concerns our people have expressed. As a result, we have decided not to proceed with the deal with ICE.”

Things were different this time around. Current Hootsuite CEO Irina Novoselsky, who took on the role in 2023, reportedly told employees at an all-hands meeting that the firm would stick with the deal as long as ICE follows its terms of service, which prohibits using Hootsuite tools for law enforcement, surveillance, and tracking.

Her alleged comments have done little to assuage online backlash. “I recently learned that Hootsuite, a brand I partnered with late last year, is reportedly providing services to ICE,” Rachel Karten, a social media consultant and newsletter writer, wrote on LinkedIn. “While I am no longer working with the brand, I feel it’s important to publicly acknowledge that I do not support that business decision.” 

Karten added that she will be donating 100 percent of the fee she earned from Hootsuite to “the National Day Laborer Organizing Network in support of legal defense, organizing, and advocacy efforts for immigrant communities.” Her post got more than 2,800 likes.

“I’m so mad at Hootsuite that I spent my day compiling a comparison chart of all of their competitors for any clients who want to explore switching,” Sara Norton, a marketing and automation consultant, commented on Karten’s post.

“First things first Hootsuite is an overpriced very poor tool,” Michael Corcoran, the co-founder of social media consultancy Slice, wrote in another LinkedIn post. “So while I question brands using it in the first place, I’m hoping many consider stepping away now.” 

Hootsuite did not reply to Inc.’s request for comment.