Some industry observers expect to see a ferocious lobbying effort in the coming months as interest groups push for reforms. One agency ceo said he wouldn't be surprised to see the government ultimately mandate a return to the 15% commission: a level that has been bargained away by clients over the years by intermediaries, who then made up the revenue shortfall with sur-commissions, called kickbacks by some, paid by the media to buyers in exchange for media volume commitments.
Many advertisers have been reluctant to return to the 15% commission since the loi Sapin took effect, sticking another nail in the heart of intermediaries already crippled by the general European recession. 'The new government realizes that Sapin went way too far,' the agency head explained. 'The old administration made changes without understanding what the consequences would be.' Meanwhile, Alain Carignon, the French minister of communication, is conducting his own investigation on the effects of the loi Sapin.
Daniel Tilles writes about advertising from Paris.
Copyright Adweek L.P. (1993)