A report issued earlier this month by the Association of National Advertisers critical of “non-transparent” practices by agencies has spilled over to the Cannes Lions International Festival of Creativity and has reportedly hurt some agency’s stock prices.
The report, released on June 7, found that rebates, or bulk-buy kickbacks, were a regular practice among agencies. Bob Liodice, the CEO of the ANA, is under fire as agencies denounce the allegations, CMO.com reported.
Business Insider reported, prior to the release of the report, that the possibility existed of “jail time” for executives complicit in the practice of using cash to benefit their agencies.
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