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Dentsu suspended from government contract bids during investigation

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February 14, 2023

Dentsu, Japan's largest advertising agency group, has been suspended from government contract bidding by the Tokyo Metropolitan Government and Osaka Prefecture, according to a report from The Drum.

Similar actions have been taken by The Japan Association for the 2025 World Exposition, which manages the Osaka Expo, and the city of Osaka, according to the report.

The suspension prevents bidding on new contracts for one year, but it does not apply to current contracts, and comes in a series of responses to a corruption scandal, which has so far resulted in the arrest of five people, including Haruyuki Takahashi, a former Dentsu executive and former executive board member of the organizing committee who was arrested on charges related to bribery, according to the report.

Ongoing investigations are also said to concern Japan's Antimonopoly Law and also involve other companies, including Hakuhodo and ADK (the two largest advertising agencies next to Dentsu), Tokyu Agency and event companies including Cerespo, Fuji Creative and Same Two, according to the report.

In a statement to The Drum, Dentsu sent the following:

"Dentsu Inc. takes this situation very seriously. The company will fully cooperate with the authorities in their investigation. Once the investigation is concluded, Dentsu Inc. will conduct its own investigation to determine the facts of the matter and the cause in addition to developing further measures to prevent recurrence. Based on the results of the investigation, Dentsu Inc. will take strict actions to restore the trust of all stakeholders."