IPA Takes TV Eye To Office Of Fair Trading
The Institute Of Practitioners In Advertising has referred the commercial broadcaster’s accreditation committee, TV Eye, to the Office Of Fair Trading over the way TV trading conditions are being imposed on media agencies.
The IPA has been in dispute with TV Eye, which comprises ITV, Channel 4, Channel Five and Flextech’s IDS, for several months over the issue of the credit insurance that broadcasters want agencies to have.
TV Eye insists that agencies must have insurance to cover any unpaid airtime costs in the event of an agency folding. In the past the majority of agencies have always agreed to pay the costs, but the economic downturn has hit the industry hard and media agencies are increasingly unhappy with the charges.
The IPA said in a statement: “A formal complaint has been made to the OFT about the trading practices of TV Eye and the broadcasters.”
The industry body will not comment further on the issue, which comes at a particularly sensitive time for ITV partners, Carlton and Granada, as their proposed £2.6bn merger faces the scrutiny of the Competition Commission (see ITV Merger To Be Investigated By Competition Commission).
IPA: 020 7235 7020 www.ipa.co.uk
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