This is all very simple to dostinguish: did you pay or have any other kind of contract with the person talking about you/your product? Then it's an ad, and could be made illegal. Are you just talking to people and hoping you'll convince them to talk to others in turn? Free speech, perfectly fine.
If I'm in green tech can I set up a charity whose goal is to raise awareness of the problems of climate change and what we can do to fight it? I'll claim that I really care about it and that's why I'm in the solar business in the first place.
I mean… that means you can’t hire people to get signatures for petitions for the very thing you’re trying to get passed. I think their point is pretty fair.
Money for advertising is already a super sized network effect, making it difficult to challenge incumbents unless you're already rich,
Look, it's a radical idea and on its face, all at once, is impractical at the moment. So I suggest rather than pointing out the myriad of holes like shooting fish in a barrel, you give it the benefit of the doubt and roll around the ways it could work in your head. And what your online/offline experience would be if it were even 10% effective.
It already is that effective in a lot of the world with stricter advertising laws, and as a Canadian I do find the levels of advertising in the us landscape to be jarring. So there are examples
Money is much easier to combine though. You can convince 1000 people to each donate $100 and now you have a sizeable amount to run a campaign. Convincing _and coordinating_ 1000 people to each talk to five neighbors is _much_ harder, and much less effective since the messaging will be all over the place.
Strict regulation of ads is one thing, outlawing advertising is another. There are places that don't allow billboards and other street-level advertisement, but that's a long way from outlawing advertisements in general.
I get that it's a nice idea to many, but I follow a general rule of adding extra skepticism if the problems of some approach are absolutely obvious and the response to pointing them out is "don't worry about, that'll sort itself out, let's just do it". Especially when the collateral damage might be huge and the energy feels like "this will save us".