Two companies controlled by Byron Allen, the onetime stand-up comic who’s built one of the largest closely held media businesses in the U.S., sued McDonald’s Corp., claiming the fast-food giant is discriminating against Black-owned businesses, Bloomberg reports.
The suit alleges the restaurant company has refused to advertise on some of Allen’s digital networks, although it does so on other White-owned channels. It says McDonald’s main ad agency hasn’t solicited bids for spots on the Weather Channel, the cable network Allen acquired in 2018.
McDonald’s spends less than $5 million, or 0.3% of its annual $1.6 billion advertising budget, with Black-owned media companies, according to the suit. The TV producer and entrepreneur, who is African-American, has said advertisers should spend at least 5% of their budgets with companies like his.
Earlier Thursday, McDonald’s released a statement saying it would more than double its national advertising spending on minority- and women-owned media businesses to 10% from 4% between 2021 and 2024. Spending with Black-owned properties will rise to 5% from 2% over the period.
Allen’s push is similar to one he launched in March against General Motors Co. The automotive giant said it plans to spend as much as 8% of its budget on Black-owned media by 2025, up from just 1% last year.
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