HARIBO GETS THEIR REBATES BACK: #MediaSnack Ep. 36

On this week’s #MediaSnack we report on a landmark Supreme Court ruling in Germany which has created a new precedent on how media agencies should manage rebates and other incentives related to media buying. This could have implications and impact into the global media buying market and affect advertisers beyond the borders of Germany. This latest ruling concluded a disagreement which has lasted over 6 years between Haribo and German media agency MediaPlus. The case has been through 3 judgements, firstly found in favour of Haribo in 2010 then reversed on appeal a couple of years later. This latest, final ruling has stated that Haribo does indeed have the right to audit and receive rebates and incentives paid to the agency. The turning point of the case rested on whether Haribo’s contract with MediaPlus classified the agency as “agent” and if so then they should be working fully in the interests of the client and pass back all incentives earned. The court ruled that MediaPlus (and in future any agency) working as 'agent' will be obliged to give full transparency over rebates earned. Also on this episode we review the recent update made by the International Olympic Committee (IOC) to Rule 40 which relaxes the rules places on athletes with regard to mentioning personal sponsor brands. Previously Rule 40 enforced a blackout of any mention to brands who were not official sponsors of the Olympics. We consider the implications, on both the sponsors (who are potentially losing exclusivity) and the brands who have been on the outside and relied upon guerrilla tactics to get seen and heard.