The Kenya Audience Research Foundation (KARF) has been ordered to pay research firm Ipsos Kenya Ltd Ksh113 million for research work done in 2016.
KARF is a consortium of media, marketing and marketing associations formed in 2017 by the Media Owners Association (MOA), Association of Practitioners in Advertising (APA) and Marketing Society of Kenya (MSK) to provide estimates of audiences to the media industry as a basis for the planning of advertising budgets.
In a ruling by the High Court, it was found that KARF failed to pay Ipsos for research work done in 2016, whose data was sold by KARF to media houses and other local and international companies. It is alleged that at least 61 companies bought the data.
Nation reports that under the agreement, Ipsos was to conduct research and supply data to KARF; who in turn would make it available to its subscribers, including media houses and advertising agents.
KARF was to pay within 45 days after being issued with the invokes and a subsequent demand note, but instead issued KARF with a two-day notice terminating the subsisting service agreement.
This, Ipsos argued in court that was an “intention of evading or avoiding its liability”.
Ipsos also accused KARF of trying to take over a research panel it had put together, hence asked the court to issue restraining orders against KARF pending a referral to arbitration.
Ipsos also wants KARF bank accounts frozen or all payments made to KARF be placed in court custody pending the determination, since the firm “has no known assets”.