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Arbitration body for TV broadcasters, ad agencies

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Arbitration body for TV broadcasters, ad agencies

The Indian Broadcasting Foundation and the Advertising Agencies Association of India are on the verge of signing an agreement that would pave the way for the first dispute resolution body for all commercial transactions between AAAI-accredited agencies and both terrestrial and satellite broadcasters in the country. Interestingly, what is good news for the broadcasters is bad news for the advertisers and their agencies of account.

While broadcasters will no longer have to fret over their bread and butter, television advertisers and their agencies of account would have to be prepared for several reprimands, including the last resort of suspending their advertisements on television channels owing to lapses in payment beyond the credit period permissible under the provisions of the dispute resolution body.

This suspension would be imposed if agencies, or indirectly advertisers, defer payments to the broadcasters beyond the stipulated credit period of 60-75 days. IBF gave its final approval to the agreement during its AGM in Hyderabad.

Currently, the instances of disputes between the broadcasters and advertising agencies are sporadic, however, the growing number of channels and the overall increase in the television ad spends would mean that such deadlocks could be on the rise in the near future.

A committee comprising 4-6 members would be formed to monitor all such payment violations and would meet on a monthly basis. The committee, however, would have no role to play in the adherence of the prevailing television advertising codes by the broadcasters.


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