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The IPA is threatening to take legal action against commercial broadcasters after a heated row over agencies' credit-worthiness.
The dispute centres on the levels of bank guarantees and insurance that ITV Network Limited - a consortium of broadcasters which includes ITV, Channels 4 and 5 and GMTV - is demanding agencies secure in order to cover the cost of their clients' TV spend. Despite on-going talks over the issue, ITVNL this week tried to delist one media agency and pull its clients' ads because it felt that the agency could not provide it with the necessary financial reassurances. The additional insurance ITVNL is demanding could add hundreds of thousands of pounds to agencies' costs.
The IPA has responded to the demands by accusing ITVNL of breaching the terms of 1998's Competition ...