MAM
Dentsu to pay USD 2.3m to clients post discrepancies
MUMBAI: Japanese advertisement behemoth Dentsu was under fire from the media in late September after it publicly apologised for cases of overcharging around 111 clients. Among identified 633 cases, 14 incidents were where ads were not placed at all and other cases of incorrect placement periods and falsified reporting of ad performance.
The advertising agency is now set to pay back an estimated 230 million yen ($2.3 million) to clients after the agency uncovered a raft of discrepancies, including some cases where fees were charged and no internet advertising placement was made, it revealed in a statement on 28 October. “We will repay the 230 million yen, and we will talk with clients after all the facts are disclosed,” Toshihiro Yamamoto, Dentsu senior vice president, told reporters in Tokyo.
The Japanese ad agency’s client Toyota was the first to point out a discrepancy, sparking an investigation into transactions dating back to November 2012, according to Bloomberg.
“Immediately after finding out about the incidents, we organized an internal investigation team in the middle of August,” the company clarified.
Other affected clients include LVMH Moet Hennessy Louis Vuitton SE, Diageo Plc, Nestle SA, SoftBank Group Corp. and Electronic Arts Inc.
Brands
Oyo parent Prism appoints former Sebi chief Ajay Tyagi to Board
Former market regulator joins Prism to strengthen governance for IPO
NEW DELHI: Prism, the parent entity of Oyo, has appointed former Sebi chairman Ajay Tyagi as an independent director, as the hospitality firm gears up for its planned Rs 6,650 crore initial public offering (IPO).
Tyagi, a 1984-batch IAS officer, served as chairman of the Securities and Exchange Board of India (SEBI) from 2017 to 2022. His appointment is aimed at strengthening the company’s governance framework and providing strategic oversight as it moves closer to a public listing.
He joins a high-profile board that already includes several prominent names from global business and policy circles. These include Troy Matthew Alstead, former CFO and group president of Starbucks; Aditya Ghosh, co-founder of Akasa Air; Deepa Malik, paralympic athlete and Padma Shri awardee; William Steve Albrecht, professor of accountancy at Utah State University; and Bejul Somaia, partner at Lightspeed Venture Partners.
Prism founder Ritesh Agarwal, said Tyagi’s experience in capital markets regulation and public-institution stewardship will be critical as the company scales operations and enhances long-term accountability.
The company recently filed preliminary papers with Sebi to raise Rs 6,650 crore through a confidential route. Market sources estimate its valuation will be in the range of $7 billion to $8 billion.
Over the course of his career, Tyagi has held senior roles in the ministry of finance, where he oversaw investment policy and financial-sector reforms. His induction to the Prism board signals a renewed focus on aligning the company’s internal standards with the stringent requirements of public markets as it advances toward its IPO.
