Pubdate: Thu, 25 Jul 2002
Source: Wall Street Journal (US)
Copyright: 2002 Dow Jones & Company, Inc.
Contact:  http://www.wsj.com/
Details: http://www.mapinc.org/media/487
Author: Vanessa O'Connell, Staff Reporter of The Wall Street Journal
Bookmark: http://www.mapinc.org/campaign.htm (ONDCP Media Campaign)
Bookmark: http://www.mapinc.org/find?174 (Barr, Bob)

Media & Marketing

HOUSE MOVES TO BAR PAYMENT TO OGILVY FOR AD CAMPAIGN

The House of Representatives passed a bill that would effectively bar the 
U.S. from paying Ogilvy & Mather Worldwide for its work on the prestigious 
White House advertising campaign to eradicate youth drug abuse.

The decision could be a setback to the Madison Avenue powerhouse agency, a 
strategic adviser in the U.S. advertising effort aiming to turn teens and 
preteens against drugs . Only three weeks ago, the unit of WPP Group PLC of 
London won a new $762.1 million multiyear contract with the government. The 
victory appeared to assure Ogilvy that it would keep its designation as the 
key private player in the controversial public-health advertising effort.

Wednesday's development could put that important assignment in jeopardy if 
it gains support in the Senate because it could force the U.S. to replace 
Ogilvy with another advertising firm.

The House approved the Treasury, Postal and general appropriations bill 
Wednesday. U.S. Rep. Bob Barr (R., Ga.), a longtime critic of Ogilvy, 
proposed an amendment to the broad appropriations bill. The amendment, 
which would effectively prevent the ad agency from getting paid by the U.S. 
for any work on the campaign after Oct. 1, was approved in a voice vote.

A spokeswoman for the White House drug czar's office didn't return calls 
seeking comment. But Congressman Barr was quick to declare victory. 
"Today's vote sends this important message that those who misuse taxpayer 
dollars and defraud the public will not be allowed to benefit further," he 
said in a statement.

In February, Ogilvy agreed to a $1.8 million settlement to resolve civil 
charges that it inflated labor costs for its earlier work on the 
advertising program. A separate criminal investigation focusing on whether 
Ogilvy employees deliberately altered time sheets is still pending. Ogilvy 
has denied any wrongdoing.

A spokeswoman for Ogilvy said the ad agency would continue to fight for the 
government assignment. "We won an open and fair competition on the merits," 
she said.

The amendment to the broad House appropriations bill would block Ogilvy 
from getting paid for its work because it prevents any company that has 
defrauded the government from receiving taxpayer dollars. It's too soon to 
say whether the amendment will become law. While the broad House 
appropriations bill passed by a vote of 308-121 Wednesday, it now goes to 
the Senate, where it must also be approved.
- ---
MAP posted-by: Jackl