Thursday, March 19, 2009

Omnicon's New Terms


Omnicom Group, the owner of several major creative agencies including BBDO, DDB, and TBWA, has begun strict new enforcement of sequential liability clauses in contracts.
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Under new standard language being introduced in Omnicom contracts, ad agencies will no longer assume liability for a project if a client doesn't pay. This could force a photographer to eat the cost of an ad shoot if a troubled advertiser fails to pay an ad agency.
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“These terms and conditions are simply not in the best interests of photographers, producers or clients,” the ASMP said. “This action, clearly taken in anticipation of increasingly difficult financial conditions is a unilateral effort to shift the burden onto those who are least prepared to bear it.”

Via PDN

A Photo Editor's take on this plus the full ASMP media alert. Resolve (LiveBook's blog) calls Omnicon and gets the following :

I spoke to Pat Sloan from Omnicom who said “There has been no policy change, we have reminded agencies of what the policy is.” As I mentioned previously this policy is to protect Omnicom from being exposed to debt liability should a company that one of their agencies is representing not pay their bill. Amy Rivera from DDB LA wrote me saying that “We have great clients that pay the advance every time and it is still our practice to secure advances.”

Via Resolved

UPDATE : A Photo Editor talks to APA about this.

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