Top Story

e4m_logo.png

Home >> Advertising >> Article

O&M North America ‘over-bills’ client, US Anti-Drugs department. To pay $1.8 mn as settlement

07-February-2002
Font Size   16
Share
O&M North America ‘over-bills’ client, US Anti-Drugs department. To pay $1.8 mn as settlement

According to a Reuters report, Ogilvy & Mather North America has agreed to pay the government $1.8 million to settle claims that it overcharged the U.S. Drug Czar's office for work on anti-drug ads. Government had stated that the agency submitted ‘false paperwork’ inflating the time spent by agencies employee on the account.

Ogilvy, has agreed to pay the government $689,744 in cash and revise its pending charges to the government downward by more than $1.1 million to settle the allegations.

The Drug Czar's office had alleged that Ogilvy charged too much for the ads because it had submitting "inaccurate" time sheets that overestimated the amount of work its employees had devoted to the campaign.

But the ad agency attributed this to "technical timekeeping errors."

"Ogilvy was a first-time federal contractor, and although we outperformed the contract and underbilled the (Drug Czar) for our work, we recognized our responsibility for our billing mistakes, and cooperated fully with the government to resolve them," said an Ogilvy statement.

The federal account is up for annual pitch in March and agency believes that this incidence will not mar its chances.

As Indian agencies move towards variable cost (and billing) regime, they’ll have to be careful to avoid such embarrassments. Time to check those ‘time-sheets’!

Tags

Bhasin on the checks and balances of new IRS, methodology with new companies like Vedsur on board, interpreting the data and why it’s not fair to compare with previous data

Chitresh Sinha, CEO, Chlorophyll Innovation Lab and Vivek Singh, Joint MD, Procam International speak exclusively with exchange4media on the upcoming #BeBetter Campaign for the TATA Mumbai Marathon

Abhishek Punia, Co-founder and COO of ARM Worldwide, tells about how they re-branded themselves from ARM Digital to ARM Worldwide and in the process marked their presence globally

Srinivasan opens up on what prompted their recent rebrand, their foray into bus depots and developing the software that displays Bengaluru Metropolitan Transport Corporation's (BMTC) Passenger Information System for all the major bus depots in Bangalore.

Duroflex and Happy mcgarrybowen launch #7HourMarathon campaign with Milind Soman to promote healthy sleeping practices

Punjab has witnessed highest growth, of more than 50% DTH penetration, followed by HP and J&K

IRS 2017 has been reinforced with design, methodology, quality, and questionnaire enhancements to ensure the highest integrity of the data.