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Dentsu to pay USD 2.3m to clients post discrepancies

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MUMBAI: Japanese advertisement behemoth Dentsu was under fire from the media in late September after it publicly apologised for cases of overcharging around 111 clients. Among identified 633 cases, 14 incidents were where ads were not placed at all and other cases of incorrect placement periods and falsified reporting of ad performance.

The advertising agency is now set to pay back an estimated 230 million yen ($2.3 million) to clients after the agency uncovered a raft of discrepancies, including some cases where fees were charged and no internet advertising placement was made, it revealed in a statement on 28 October. ?We will repay the 230 million yen, and we will talk with clients after all the facts are disclosed,? Toshihiro Yamamoto, Dentsu senior vice president, told reporters in Tokyo.

The Japanese ad agency's client Toyota was the first to point out a discrepancy, sparking an investigation into transactions dating back to November 2012, according to Bloomberg.

?Immediately after finding out about the incidents, we organized an internal investigation team in the middle of August,? the company clarified.

Other affected clients include LVMH Moet Hennessy Louis Vuitton SE, Diageo Plc, Nestle SA, SoftBank Group Corp. and Electronic Arts Inc.

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