Update on Racial Discrimination in Advertising Claim Against McDonald’s
We reported back in April about Entertainment Studio Networks v. McDonald’s USA, LLC. Entertainment Studio Networks (ESN) filed suit in 2021. We summarized the allegations as follows in the previous post.
ESN, which operates seven television networks, alleged that, although it reached out to McDonald’s’ advertising agency, OMD Worldwide (OMD), OMD never recommended that McDonald’s place ads on ESN. ESN alleges that it was directed to contact another advertising agency, Burrell Communications (Burrell), which McDonald’s used to reach Black audiences. ESN objected that its content is not exclusively targeted at the Black community, and yet it is shut out from general advertising revenues. ESN alleges that McDonald thus discriminates against Black-owned businesses, in violation of 42 U.S.C. § 1981, in the way it allocates its advertising dollars.
It ended with a fizzle rather than a bang. In June, as reported here on Investing.com, the parties settled the case. The terms of the settlement are confidential. McDonald’s admitted to no wrongdoing. “We are pleased that Mr. Allen has come to appreciate McDonald’s unwavering commitment to inclusion, and has agreed to refocus his energies on a mutually beneficial commercial arrangement,” McDonald’s USA said in the statement
I’m lovin’ it.