Ayer Will Pay to Settle Army Ad Case
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WASHINGTON — N. W. Ayer Inc.,the advertising agency that created the Army’s popular “Be All You Can Be” advertising campaign, has agreed to pay $750,000 to settle claims of alleged improprieties, the Justice Department said Friday.
In the settlement deal, the government alleged that New York-based Ayer knowingly charged incorrect costs on the Army’s advertising contracts because of inaccurate time cards and records.
The government also charged that Ayer falsely represented that it had obtained competitive bids for subcontracts related to the Army advertising contracts between 1978 and 1986.
The Army in 1987 broke off its 19-year relationship with Ayer and awarded a $100-million advertising contract to Young & Rubicam Inc.
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