- Facebook’s contracts with some of its ad agencies have a nondisclosure clause that prevents them from discussing any aspect of the company’s business, even if that information is already public.
- Industry insiders say the language is stricter than most client contracts but that it doesn’t apply to most larger and holding company-owned agencies that have more financial leverage.
- This language could be a major conflict for agencies that do work for Facebook but also use Facebook to market their other clients, said Jeffrey Greenbaum of law firm Frankfurt Kurnit Klein & Selz.
- Facebook declined to comment.
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Facebook spends millions managing its reputation and business relationships, and this practice also applies to the ad agencies it uses in its marketing.
Facebook has contracts with some agencies that forbids them from confirming or commenting on any aspect of Facebook without its written permission — even