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North Providence's Yacht Club Soda says Meta's AI keeps flagging its bottles as alcohol, throttling ads for two months

Yacht Club Soda president John Sgambato says Meta's automated systems repeatedly restrict the 111-year-old family bottler's social media posts after mistaking its glass-bottled sodas for alcohol, and its AI chatbot has refused to escalate the case to a human for two months.

North Providence's Yacht Club Soda says Meta's AI keeps flagging its bottles as alcohol, throttling ads for two months

NORTH PROVIDENCE — For two months, the president of Yacht Club Soda has been fighting an algorithm that he says keeps confusing his family's glass-bottled sodas with alcohol, repeatedly restricting the company's posts on Meta's platforms and threatening a key advertising channel for the 111-year-old business.

John Sgambato told reporters that Meta's automated systems flag the company's social media content as "inappropriate," and that the platform's AI chatbot has blamed the glass bottles the North Providence bottler uses for its sodas. Each time Sgambato requests a manual review, he said, the restriction is lifted — only to return roughly 30 seconds later.

"After the clearing, 30 seconds later, we're restricted again," Sgambato said.

The cycle has left him unable to reach a human being. Sgambato shared messages he said came from Meta's chatbot, including one stating that his case was not eligible to be transferred to a human agent. He said he has exchanged hundreds of messages with the bot, which at one point acknowledged, "we know that this is a problem on our end."

"It's just total frustration," he said.

The stakes go beyond bruised feelings. Yacht Club Soda relies on Meta's platforms to advertise, and Sgambato worries the recurring restrictions could cost the company business. The problem lands as the bottler is already absorbing other pressures, including Canadian tariffs on its products.

"It's just another thing we shouldn't have to deal with," Sgambato said.

Yacht Club Soda has been making beverages since 1915 and remains a family operation. Sgambato said his grandfather started working for the company in 1935 and bought it in 1960.

"It's kind of like one of those things you take a lot of pride in," he said. "It's a family business."

The episode highlights a growing complaint among small businesses that depend on large technology platforms: when automated moderation goes wrong, there is often no clear path to a human decision-maker. For a local manufacturer whose brand is built on nostalgia and community ties, a persistent mislabeling as an alcohol seller carries reputational as well as financial risk.

Meta did not respond to a request for comment.

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