The Association of National Advertisers found that media companies are using rebates to reward ad agencies for buying a certain amount of advertising time or space on behalf of their clients, the people said. The group found that the practice was widespread within the sample is studied.  Maurice Levy, chief executive officer of Publicis Groupe SA, called the Association of National Advertisers' pending study on transparency in the ad business "unfair and an unwarranted attack on the entire industry.

QUESTIONS:

1. Explain the relevance of the ANA study and discuss the potential ethical implications.
2. In your own words, explain what these 'rebates' are, as discussed in the paragraph.
3. If these rebates are, in fact, occurring in the U.S., what are the implications for advertisers and ad agencies?
4. Why do you think these rebates are commonly used in other countries, but not the U.S.?
5. Describe the ethical challenge that may occur in the industry if the rebates are being used as the study suggests.

Answer rating: 100% (QA)

1 The relevance of the ANA study lies in its investigation into the widespread practice of media companies offering rebates to ad agencies for purchas... View the full answer