FBI's media agency buying probe 'very serious,' could lead to fraud charges, says ANA lawyer
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The Federal Bureau of Investigation’s probe into agency media-buying practices will focus on the extent to which agencies covered up attempts to take revenue that clients maintain is theirs, the Association of National Advertisers’ top lawyer said Friday.
“It is a very serious investigation,” Doug Wood, a partner at Reed Smith and the Association of National Advertisers’ general counsel, said during a presentation at the organization’s Masters of Marketing conference in Orlando. “They have issued some subpoenas. They will be issuing more subpoenas,” he said. “It may turn out to be nothing is wrong,” he added, but “it could turn out quite the oppositewe’ll know that in the next six months to a year.”
The investigation, which Wood estimated began in April, concerns allegations that agencies engaged in non-transparent practices, including collecting cash rebates from media vendors and not passing it along to clients. The probe was sparked in part by a 2016 ANA report conducted by independent firm K2 Intelligence. Earlier this month, the ANA revealed that the FBI had recently contacted Reed Smith about the investigation in attempt to get cooperation from ANA members, which include some of the largest media spenders in the nation. The ANA is leaving the decision up to individual advertisers, but suggesting they do not talk to the FBI without a lawyer.
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