Sohini Chatterjee
It is very noticeable that there are never any commercials for McDonalds on The Weather Channel. Weather Group LLC, their parent company and Entertainment studios Networks Inc, which are both owned by Byron Allen, thinks it is because McDonalds is being racist and they are suing them for $10 billion as a consequence.
Byron Allen’s companies filed a complaint alleging that, “McDonald’s intentionally discriminated against entertainment Studios and Weather Group through a pattern of racial stereotyping and refusals to contract”, in a lawsuit filed this week in Los Angeles County Superior Court.
The Weather Channel in 2018 was acquired by Byron Allen through his Entertainment Studios, by paying the previous owners a The Blackstone Group, Bain Capital, and Comcast/NBCUniversal an estimated $300 million. The Weather Channel was acquired by Bain Capital, Blackstone Group, and NBCUniversal for $3.5 billion just 10 years earlier.
“Real People” on NBC, a reality show of the early 1980’s was the start of Allen as an Africa American teenager in the television. He has developed a media empire since then. He owns other properties such as, Cars. tv, Pets. tv and Recipe. tv along with 23 ABC/NBC/CBS/FOX Network affiliate broadcast stations in 19 US markets. Allen praised the role of Weather Channel for keeping America safe, at the time of the Weather Channel Purchase.
Byron Allen in a statement said, “The Weather Channel is one of the most trusted and extremely important cable networks, with information vitally important to the safety and protection of our lives.”
“We welcome The Weather Channel, which has been seen in American households for nearly four decades, to our cable television networks division”, he added.
Since Allen’s purchase of the network, McDonalds has refused to advertise even though they have “purchased significant advertising on similarly situated, white-owned networks”, the lawsuit alleged.
Allen said that it was about the “economic inclusion” of the “African American-owned businesses in the U.S. economy…”
“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. The economic exclusion must stop immediately”, he added.
McDonalds announced they were increasing spend with “diverse-owned media, content, and production partners”, on the very same day the lawsuit was filed.
Morgan Flatley, Chief Marketing and Digital Customer Experience Officer, McDonald’s USA remarked that, they had been “making serious commitments” that were guided by their values, and with the “latest move”, they were taking action to “advance diverse-owned companies across the marketing supply chain”.
He continued that they were using their resources to support these kinds of platforms and businesses, which helps keep the brand at the “center of culture while creating deeper relationships with our diverse customers, crew and employees.”
Vicki Chancellor, Chair, McDonald’s USA Franchisee Marketing Committee said “As a Black female entrepreneur, I am proud to be a part of McDonald’s continued effort to meet Women and diverse-owned businesses where they are by providing much-needed resources to do business in an ever-evolving marketplace”.
According McDonalds’ statement release, they plan to go from 4% to 10% increase in national investments in diverse-owned companies. There will be increase in the spend from 2 to 5%, specifically, with black-owned media and production properties with additional investments going to other segments including Asian Pacific American , Women, Hispanic, and LGBTQ-owned properties.
“We will review the complaint and respond accordingly”, was McDonalds’ brief response to the lawsuit which was filed on the same day of their announcement.
It was claimed by the lawsuit that, McDonalds violated federal and California state law prohibiting racial discrimination in contracting and it sought actual and triple damages along with attorney fees and legal costs, where the estimated sum total exceeds $10 billion.