Production Costs Can Be Rigged Without Being Illegal
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While the U.S. Department of Justice investigates ad agencies accused of unscrupulously directing production jobs into their own in-house departments, the same set of problems is eating away at agency trust in Europe.
At a session during Advertising Week Europe, production company representatives accused agencies of giving themselves an unfair advantage when bidding for production work.
Steve Davies, CEO of the U.K. Advertising Producers Association, stopped short of accusing agencies of illegal practices. However, he said, “There are so many ways you can favor yourself without doing anything as crass as entering a criminal conspiracy You just have to not negotiate the price you get from a production company, or not supply them with information as you go along.”
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