Dentsu overcharging scandal

First published by Author on October 03, 2016 in the following categories: Latest

Japanese digital advertising giants Dentsu have acknowledged and apologised for overcharging hundreds of companies using their services for online advertising.

Dentsu Inc have reportedly overcharged 111 companies, which has been seen as a surprise given that the company is renowned for having a far reach across Japan as well as being known for avoiding the headlines for the wrong reasons.

The Dentsu overcharging scandal may have unfortunately cast the company in a very different light though.

At a recent conference in Tokyo, executives of the company bowed in apology and accepted that ‘overworked employees’ was the reason for the problem arsing.  It is not believed that the employees involved were trying to intentionally cheat their clients; it has been put down to a lack of capacity and time within the organisation.

There is, of course, no excuse at all for what has happened though, and the company must look inward to make sure this never happens again.

633 potential cases uncovered so far

Investigations have revealed as many as 633 potential cases for overcharging so far which could amount to a staggering figure of £1.7m in wrongfully gained revenue.

The investigation started in August when a major client complained that their internet adverts weren’t having the expected impact. So far, the investigation has revealed that some adverts were never even posted online, despite being paid for.

The loss so far…

Company shares fell by almost 5%, although it is thought that none of their clients have reportedly cut ties with the company as of yet. They are known for having some seriously strong bonds with their clients, so it may be the case they can save themselves by offering a fair compensation package in response to the overcharging.

In recent years, Dentsu have been expanding their operations across the globe, acquiring UK agency Aegis Group PLC for around £3.8bn in 2012.