It doesn't. Or it gets evolved until it does, but there's no incentive to do that while there are very little "good" ads.

> How does a "good" advertiser submit themselves to some kind of whitelist?

They don't, that's the point. As AdNauseam currently works, there are no good advertisers, and for now it's a good enough heuristic. Any ad with an active component is a legitimate target.

> How does AdNuseum verify the advertisers claims?

It doesn't. It does not care.

It might just lead to escalation, it has so far. The point is there is a plausible way forward. It's the story of countless industries, just because it hasn't happened yet for this one doesn't mean it won't ever.