In 2016, an association of advertisers commissioned a report to look into the media buying practices of advertising agencies. The investigation found pervasive issues, including, but not limited to, agencies receiving significant rebates from media companies and failing to pass those rebates on to their customers. That initial investigation has now led to a criminal investigation by the FBI.
While we are going to leave the criminal investigation to the FBI, we are focusing our attention on the potential civil liability facing advertising agencies that breached their contracts with our clients or potentially even committed outright fraud. If your company has spent significant money with advertising agencies over the last few years, and you are wondering whether the ad agency’s intricate and unnecessarily complicated accounting is concealing rebates and other benefits owed to you, give us a call.