Ad firm to pay penalty

The New Age (Free State) - - SPORT - TNA REPORTER

OUT-OF-HOME ad­ver­tis­ing firm Provan­tage Me­dia, one of the 30 me­dia com­pa­nies listed in a com­plaint filed with the Com­pe­ti­tion Tri­bunal for price fix­ing and fix­ing of trad­ing con­di­tions, has ad­mit­ted to con­tra­ven­ing the Com­pe­ti­tion Act.

The Com­pe­ti­tion Com­mis­sion is ask­ing the tri­bunal to con­firm an ad­min­is­tra­tive penalty of R1094222, as a per­cent­age of Provan­tage’s an­nual turnover for the year end­ing 2016.

In terms of the pro­posed set­tle­ment agree­ment, Provan­tage un­der­takes to pro­vide ei­ther 25% bonus in ad­ver­tis­ing space or a 25% dis­count for ev­ery rand of ad­ver­tis­ing space bought by all qual­i­fy­ing small agen­cies.

Provan­tage will also have to con­trib- ute R393920 to the Eco­nomic Devel­op­ment Fund over three years from the date of con­fir­ma­tion of the con­sent agree­ment.

The mat­ter re­lates to an in­ves­ti­ga­tion that was ini­ti­ated in 2011 which found that, through the Me­dia Credit Co-Or­di­na­tors (MCC), var­i­ous me­dia com­pa­nies agreed to of­fer sim­i­lar dis­counts and pay­ment terms to ad­ver­tis­ing agen­cies that place ad­ver­tise­ments with MCC mem­bers.

MCC ac­cred­ited agen­cies were of­fered a 16.5% dis­count, while non-mem­bers were of­fered 15% dis­count on pay­ments made within 45 days of the date of the state­ment.

The re­spon­dents also agreed to charge a 50% can­cel­la­tion fee in re­spect of all ads that agen­cies with­drew at least 24 hours be­fore pub­li­ca­tion. – 701068

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