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McDonald’s sued for alleged discrimination against black-owned media companies

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WASHINGTON: Two companies owned by a black American business mogul have sued McDonald’s, alleging the fast food giant is once again discriminating against black-owned media companies.
The lawsuit has been filed in California Superior Court and seeks $ 10 billion in damages.
This is part of a campaign by tycoon Byron Allen to get big US corporations to spend more advertising dollars on black-owned media.
This lawsuit was filed by two companies owned by Allen: Entertainment Studios Networks Inc. and Weather Group LLC.
Allen Media Group / Entertainment Studios produces films and owns more than a dozen television stations.
The lawsuit argues that McDonald’s spent around $ 1.6 billion on TV ads in the United States in 2019, but only 0.31% of that amount went to black-owned media.
The two companies that complained did not say how they arrived at the $ 1.6 billion figure.
“It’s about the economic inclusion of African American-owned businesses in the US economy,” Allen said in a statement.
“McDonald’s takes billions from African American consumers and gives next to nothing. The biggest trade deficit in America is the trade deficit between white American and black businesses, and McDonald’s is guilty of perpetuating this disparity,” Allen added. .
McDonald’s intentionally discriminated against entertainment studios and the weather group through racial stereotypes and refusal to contract, the lawsuit says.
A spokesperson for McDonald’s told the Wall Street Journal he would review the lawsuit.
Earlier Thursday, McDonald’s announced it would more than double the advertising money it pays to media companies owned by blacks, Hispanics, women and other under-represented groups over the next four years. .
Spending with black-owned properties will increase from 2% to 5% of national ad spending during this period.

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