This policy imposes some penalties to Science and Culture generation, but makes it easier to earn the Diplomatic Favor needed to vote for favorable resolutions and earn Diplomatic Victory points when the World Congress convenes. It's particularly useful to America, Canada, and Sweden, all of whose unique buildings and/or abilities will help them maintain a lead in Diplomatic Favor output.
One of the most insidious developments of the information age is the proliferation of disinformation which is not only factually incorrect, but embedded within a self-reinforcing set of values and assumptions that makes it difficult for those who buy into the system to mentally disengage from it. Intentional construction of parallel discourses is now part of the toolbox of social control for regimes that wish to restrict the amount of unorthodoxy within their populations. Ideas not sanctioned within a disinformation campaign are usually explained away as aberrations or perversions or, charitably, misunderstandings of the Right Way of Things. The state-run, propaganda-heavy media of North Korea is perhaps the best-known example of this today, but ample instances of this exist through history, and make for disquieting reading.