The fast food chain has been accused of discriminating against African-American-controlled media in their advertising spending.
Two companies owned by a powerful black businessman have sued McDonald’s in the United States, accusing McDonald’s of discriminating against African-American-controlled companies in their advertising spending and claiming $ 10 billion in damages and benefits.
The petition was filed in California court by Entertainment Studios Networks and Weather Group, owned by businessman Byron Allen, which calls on big companies to buy more ads in African American media. The Allen Media / Entertainment Studios group produces films and owns more than a dozen television channels in the United States.
Reject contracts based on racial stereotypes?
The complainant says the fast food group spent around $ 1.6 billion on TV ads in the United States in 2019, but only 0.31% of that amount went to African-American-dominated media. His complaint alleges McDonald’s intentionally discriminated against his company by rejecting contracts based on racial stereotypes.
“McDonald’s takes billions from African American consumers and gives them next to nothing in return. The biggest trade deficit in America is the trade deficit between white businessmen and black America, and McDonald’s is guilty of perpetuating this inequality., Defendant Byron Allen said in a statement the Wall Street newspaper The group will investigate this complaint.
On Thursday, May 20, McDonald’s announced it would double its advertising spending over the next four years in media owned by representatives of black and Hispanic minorities, women and other under-represented groups. During this period, he said, spending on African-American media will drop from 2% to 5% of the national total.
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