FRI Phones Inc. always used the services of ad agency West, Smith, and Wiley, to create advertising campaigns for its products. When a major competitor outsourced its promotional campaign to West, Smith and Wiley, FRI Phones revoked its contract with the ad agency. Which of the following is most likely to have been the reason for FRI Phones Inc.'s decision?

Question

Quizplus · Accepted Answer

Ad agencies usually work closely with their clients, and they often have access to confidential information. This can create ethical conflicts if an agency is working with two or more competing clients. Most agencies are sensitive to the potential problems and keep people and information from competing accounts separated.