The fast food chain has been accused of discriminating against the African-American media that controls its advertising spend.
Two companies owned by a powerful black businessman have filed lawsuits against McDonald’s in the United States, accusing McDonald’s of discriminating against companies controlled by African Americans in its advertising spending, and demanding $ 10 billion in damages and benefits.
The petition was filed in California court by Entertainment Studios Networks and the Weather Group, owned by businessman Byron Allen, who are calling on the big corporations to buy more ads in the African American media. The Allen Media / Entertainment Studios Group produces movies and owns more than a dozen television channels in the United States.
Rejecting contracts based on racial stereotypes?
The plaintiff states that the fast food group spent around $ 1.6 billion on TV ads in the United States in 2019, but only 0.31% of that went to media that is dominated by African Americans. His complaint alleges that McDonald’s deliberately discriminated against its company by rejecting contracts based on racial stereotypes.
«McDonald’s takes billions from African American consumers and gives them almost nothing in return. America’s largest trade deficit is the trade deficit between white and black businessmen, and McDonald’s is guilty of perpetuating this inequality.Defendant Byron Allen said in a statement Wall Street Journal The group will investigate this complaint.
On Thursday, May 20, McDonald’s announced that it will double its advertising spending over the next four years in media owned by representatives of black and Hispanic minorities, women, and other underrepresented groups. During this period, he said, spending on African American media will decrease from 2% to 5% of the national total.
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