ACA publishes model contract

The Association of Canadian Advertisers has released what it says is the first-ever guide to advertiser-agency contractual agreements created from the advertiser’s point of view.

The guide covers topics such as remuneration and expenses, along with double liability, confidentiality, intellectual property rights, billing procedures and payment, and termination and default. It also includes model clauses and a model agreement.

The 120-page Advertising Services Agreement – Commentary and Model Agreement, was written in plain English by David Young, a specialist in advertising law with the firm of Lang Michener in Toronto.

Ron Lund, ACA president, says that aside from a few exceptions among some major advertisers, contractual agreements between clients and their agencies are generally drawn up on the agency side, a situation the ACA wanted to rectify.

‘We felt we needed one from the client perspective.’

While the publication of the guide was not in response to a specific incident, Lund says the association thought it advisable to ‘protect yourself first and be wise.’

Lund calls the guide ‘the gold standard’ with respect to the client’s needs, but says clients and agencies needn’t follow it to the letter. What they can do, he says, is use it as a starting point or blueprint for discussion.

The ACA usually provides its publications to members only, but because there are other potential stakeholders in such agreements, the organization is selling the guide to non-members.

Last year, the ACA commissioned an agency remuneration survey and Lund says the organization is looking at publishing a number of other support documents for its members next year.

These include a law handbook, a guide to agency selection best practices, and agency performance guidelines.