Chinese police raids GroupM offices in Shanghai

With China increasing scrutiny of foreign businesses operating in the country, WPP has come under the scanner of the Chinese Police in Shanghai, as per various media reports. The reports stated that the police has raided the offices of GroupM, WPP’s media agency, in Shanghai and has been questioning its employees. One senior executive is said to have been detained by the police.

The media reports stated that the Chinese police are investigating allegations of “possible media broker activities”, wherein media rebates were given to select agencies. Client funds were said to be used without the clients or the tax authorities being informed about it.

Such corrupt practices and lack of transparency has been pointed out in several other cases across the Asia Pacific region, and specifically in China, by the World Federation of Advertisers.