Dentsu Delays Report On Client Over-Billing

In September, Dentsu admitted that hundreds of digital transactions affecting more than 100 clients had been botched, resulting in overcharges, failure to place orders, false reporting regarding performance results and other problems.

The company had begun an internal investigation and said then it expected to complete the probe by year’s-end. 

Now the company says the investigation will be delayed by at least a month and estimates the report — which is looking into digital services provided by its Japanese operations dating back to 2012 — will be presented “after the end of January 2017.” 

No reason was given for the delay, but the company is reeling from two ongoing scandals.



The other is related to the death of a young worker in late 2015 whose apparent suicide has been linked to the excessive amount of overtime hours she was logging in the months before she died. That death triggered a government probe (still ongoing) looking at possible violations by the holding company of Japan’s labor laws. 

In the latest fallout from that workplace investigation, the company’s president and CEO, Tadashi Ishii, said last week he would resign later this month to take full responsibility for the death of the employee.

The company said that a new CEO would be appointed at a board meeting later in January. 

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