The Army suspended N. W. Ayer from any bidding.

The New York advertising agency was suspended from bidding on new contracts with the federal government because of alleged overcharging and bid rigging on the Army’s advertising campaigns. The suspension applies to the company’s right to bid on contracts “with any agency in the executive branch of the government.” It follows by six months a decision by the Army not to renew its existing contract because of similar allegations. A month before, an N. W. Ayer executive pleaded guilty to accepting $60,000 in kickbacks while performing work for the Army.