On this week’s #MediaSnack Tom and David report on a landmark Supreme Court ruling in Germany that ends a six-year legal battle.
The ruling creates a new precedent on how media agencies should manage rebates and other incentives and could have implications and impact well beyond Germany.
Tom and David explain how the case turned 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 ruling means that any agency working as agent will now be obliged to give full transparency over rebates earned.
Tom and David also get into the Olympic spirit and review the International Olympic Committee’s update to Rule 40, which relaxes the rules places on athletes with regard to mentioning personal sponsor brands.
They consider the implications, on both the sponsors (who are potentially losing exclusivity) and the brands that have been on the outside and previously relied upon guerrilla tactics to be seen and heard.