In terms of the amendments to the Act, any conduct that is found to be collusive or cartel-like is a criminal offence. Having assessed its exposure, and without acknowledging any wrongdoing, Media24 has decided to take these precautionary measures to create certainty and avoid any regulatory and legal risk.
The industry-wide practice of making available a 16.5% early settlement discount or commission to media agencies that book advertising with Media24 properties – including all newspapers, magazines and online platforms – has been in existence for decades. New rate cards will exclude any agency commissions or early settlement discounts.
All Media24 documentation that refers to advertising rates, early settlement discounts and agency commission (including credit applications) issued before 1 May is nullified. Furthermore, for all advertising bookings made prior to 1 May 2016 where the advert will be published from 1 May 2016 or thereafter, revised rate cards will apply.
The group apologises for the short notice and inconvenience this will cause its advertisers and advertising agencies. Given the serious nature of the matter, it believes these changes are in the best interest of all parties.
