Capital Radio Discount Assurance

Capital Radio yesterday gave its assurance to the Office of Fair Trading that it will stop giving discounts to advertisers who promise exclusively to use either Capital FM or Capital Gold.

The OFT began an investigation into Capital’s discounting practice a year ago, following a review of the radio advertising market in London. The 2 London stations had been offering discounts of between 5% and 10% to advertisers agreeing to the exclusivity arrangement. They have now agreed to restrict such discounts to test marketing campaigns.

Capital is not the first company to undertake such an assurance. In January Centaur Publishing agreed to accelerate its policy of discontinuing contracts offering discounts to recruitment advertisers in return for exclusivity. Last year VNU also agreed to stop offering exclusivity discounts.

OFT: 071 242 2858