HARRAGATE, Ohio — A Harrogates-based advertising company has agreed to pay a $1 million settlement with an Ohio public school district for failing to warn students that it was running ads for Harrogated Schools.

The settlement is the first of its kind in Ohio.

The school district paid $400,000 to the company in 2014.

The school district and Harrogation Schools, which operate under the Harrogaters brand, have been at odds since 2014 when the company was accused of misleading students in an advertising campaign that showed an image of the company’s Harrogations brand mascot, Harrogator.

The district’s attorney filed an administrative complaint against Harrogating Schools last year, alleging that the company did not properly label the Harrovates brand mascot as a Harrogators school and did not provide enough notice to students and parents that the Harrgates brand name was being used.

The company agreed to a settlement agreement Friday.

The company said it will now pay $500,000 in legal fees to the Harrogin Schools and the Harriagates Schools’ parent company.