WASHINGTON – Two companies owned by a black United States business mogul have sued McDonald’s, alleging the fast-food giant discriminates again black-owned media companies.
The suit was filed at the superior court of California and seeks US$10 billion (RM41.4 billion) in damages.
It is part of a drive by Byron Allen to get major US corporations to spend more advertising money on black-owned media.
The suit was filed by two firms owned by Allen: Entertainment Studios Networks Inc and Weather Group LLC.
Allen Media Group/Entertainment Studios produces movies and owns more than a dozen television stations.
The suit argued that McDonald’s spent approximately US$1.6 billion on television ads in the US in 2019, but only 0.31% of that went to black-owned media.
The two companies filing the suit did not say how they arrived at the US$1.6 billion figure.
“This is about the economic inclusion of African American-owned businesses in the US economy,” said Allen in a statement.
McDonald’s takes billions from African-American consumers and gives almost nothing back. The biggest trade deficit in America is the trade deficit between white corporate America and black America, and McDonald’s is guilty of perpetuating this disparity.”
McDonald’s intentionally discriminated against Entertainment Studios and Weather Group through a pattern of racial stereotyping and refusals to contract, said the suit.
A McDonald’s spokesman told The Wall Street journal it will review the legal action.
Earlier yesterday, McDonald’s announced that it will 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 the national advertising sum over this period. – AFP, May 21, 2021
