4As Malaysia appeals to MTA and PIAM to remove 'unethical' pitch clause

The Association of Accredited Advertising Agents Malaysia (4As) has written to the heads of the Malaysian Takaful Association (MTA) and the Persatuan Insurans Am Malaysia (PIAM) after it introduced a clause in its pitch conditions that takes ownership of all materials submitted by agencies for a pitch. The clause, Clause 2.14, states: “All supporting materials and other documentation submitted with the response will become the property of the associations unless otherwise requested by the proposers at the time of submission.”

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The clause was introduced as part of MTA and PIAM's 2023 advertising agency pitch conditions for a consumer education campaign on the "Phrased Liberalisation of Motor and Fire Tarrifs".

"The advertising industry deems this clause, that brazenly wants to take over an advertising agency's ideas and work, as unethical, oppressive and highly prejudicial," said Khairudin Rahim, CEO of 4As in a letter that was shared with MARKETING-INTERACTIVE. He added:

This is tantamount to a demand for free ideas. 

It added that unless otherwise requested in writing and objected to by the advertising agency before the proposals are submitted, both associations through this clause are "unethically" demanding for ownership and retention of intellectual property. 

Rahim said in his letter that three written appeals have been made to the CEOs of MTA and PIAM since to remove the clause but that the CEOs have displayed "a lack of professional curtesy". 

"They did not bother to respond stating their association's position to agree with or disagree with the 4As appeal," Rahim said. "We are therefore left to the conclusion that Malaysia's foremost takaful/general insurance trade bodies, despite knowing the demand is unethical, wish to continue making this 'the standard' when dealing with advertising agencies."

He explained that the trade bodies, as potential customers of the advertising agencies, feel they are "entitled" to keep doing so. 

"This stance contradicts from your association's stated goals of wanting to earn/build trust, positively promote the image, foster public confidence and raise professionalism of the takaful and general insurance industry," he said, adding that he hopes that MTA and PIAM will address the situation and "do what is right".

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