Dentsu: 111 Clients in Japan Faced Overcharging, 'Inappropriate Operations'


For over a month, advertising giant Dentsu Inc. has quietly been investigating “inappropriate operations” at its digital ad businesses in Japan. On Friday, it announced some preliminary results: It tallied 111 clients affected, and 633 suspicious transactions amounting to $2.3 million.

Tokyo-based Dentsu said it found problems including false reporting of performance results or achievements and a failure to place ads. There were also “incidents where our invoices did not reflect actual results, resulting in unjust overcharged billing,” it said. In 14 cases, fees were charged but no ads were placed.

The investigation, which Dentsu said started in mid-August and is ongoing, covers deals going back to November 2012. Client Toyota has said it was affected, but it is not clear which others were.

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