IBF-AAAI blacklist 3 defaulting cos.

NEW DELHI: A joint committee of the Indian Broadcasting Foundation (IBF) and Association of Advertising Agencies in India (AAAI) has decided that no television channel would accept ads from three chronic defaulters till they pay up their dues.

The diktat, which comes into effect from 10 November, would be enforced on Motorola, Samsung and Reckitt Benckiser. The last one is the owner of the Dettol brand.

The IBF-AAAI joint committee is a duly constituted body representing major broadcasters and advertising agencies. Both these bodies signed an agreement on 16 February, 2001 primarily to oversee aspects related to advertising.

The joint panel has been regularly meeting for over three years now and through a collective effort, has substantially reduced the advertising dues of various broadcasters.

It has been increasingly observed by the joint committee that AAAI members have not been able to meet their entire obligations to pay broadcasters within the credit period

since their advertisers are in default in meeting their dues to AAAI member-agencies.

At the last IBF-AAAI meeting held on 2 November 2004, members observed that some of the clients, like Samsung, Motorola and Reckitt Benckiser, have been consistently defaulting and have not cleared the dues despite specific

meetings with them.

It was then decided to advise all the IBF members not to accept any further advertising business from the aforementioned defaulting advertisers with effect from 10

November, 2004.

The joint committee also felt that many advertisers are not paying their agencies on time and if this trend continues, all these advertisers would also face similar action.

Advertisers have been warned through their agencies of IBF-AAAI's concern relating to delay in payments and, if things do not improve, IBF members could be advised from

not carrying these advertisers commercials as well.

Earlier, the IBF members had stopped ads of BPL Ltd. and Ozone Ayurvedics due to constant default, which has been now rectified.


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