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IBF lifts embargo on Samsung, Reckitt Benckiser

13-November-2004
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IBF lifts embargo on Samsung, Reckitt Benckiser

The embargo imposed on Samsung and Reckitt Benckiser by the Indian Broadcasting Federation (IBF) and the Advertising Agencies Association of India (AAAI) has been lifted after the two companies cleared their outstanding advertising dues. “The embargo on Motorola continues as it still has to make the required payments,” said Naresh Chahal, IBF’s Director for Finance.

Two days ago, the IBF and AAAI had asked TV channels not to accept any further advertisements from Samsung, Reckitt Benckiser and Motorola. Samsung had objected to being misrepresented and labeled a chronic defaulter. According to a Samsung India Electronics Ltd. representative, “We are surprised at the press statement issued by IBF and AAAI. We are one of the largest advertisers in the country with an excellent track record of payment.”

Chahal clarified the decision for the embargo saying, “Our idea is not to put a company in a spot but to ensure that they respect their commitments and maintain professional standards. Even though defaulting on payments is not a very common phenomenon, such incidents do occur every now and then. An embargo is our way of keeping advertisers in check.”

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