INS cracks the whip on accredited agencies delaying payment to publications

The Indian Newspaper Society (INS) has further intensified its efforts regarding dues payable by the ad agencies to the publications. In its latest communiqué dated May 7, 2020 to all accredited advertising agencies, INS addressed agencies’ queries in respect of payments to be made in cases where clients have not yet paid the agencies.

Referring to Rules and Regulations of Accreditation Governing Accreditation of Advertising Agencies and Media Services Agencies, INS pointed out that, “It is clearly stated that INS deals with accredited agencies on a Principal to Principal basis, hence it is the responsibility of the agencies to make timely payment to the publications irrespective of receipt of payment from advertisers/ clients.

At the same time, INS stated, “However, to substantiate your claim of non-payment by the advertisers, you are requested to forward complete information/ details of the advertiser and the dues payable to the publications, etc., to enable INS to look into the matter as well as obtain payment status.”

The industry body also made it clear that this action of INS was only to communicate to the advertisers the need to make payment, “and in no way exempts the agency from the responsibility towards dues payable to the publications”.

Earlier, INS has cautioned ad agencies to clear all MRV 01/20 & MRV 02/20 print dues or face action. In its letter dated May 5, 2020, INS had issued a circular to the agencies, stating, “Agencies are required to submit the details of payments, i.e., No Due Certificates/ Bank Statement establishing the clearance of cheques issued to the concerned member publications against outstanding dues reported in the MRV. Further, all agencies whose Bank Guarantees have expired or about to expire and are up for renewal may furnish the same on or before 31st May 2020, failing which notice shall be sent to your Bankers for encashment of the same without further notice/ correspondence to individual agencies.”

With reference to this circular, INS has received several enquiries seeking clarification in respect of payments to be made in cases where clients have not yet paid the agencies.

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