Five top model agencies, including those that discovered Kate Moss and Erin O’Connor, have been fined a total of £1.5 million by the competition watchdog for colluding to fix prices.
The Competition and Markets Authority said that Models 1, Premier, Storm, Viva and FM Models exchanged “confidential, competitively sensitive information” and in some instances “agreed a common approach to pricing”.
The watchdog accused the industry’s trade body of “regularly and systematically” sending emails to members encouraging them to reject fees offered by some customers and to negotiate a higher figure.
It said the collusion affected customers including “well-known high-street chains, online fashion retailers and consumer goods brands”.
John Wotton, who chaired the case decision group that made the ruling, said: “When businesses collude rather than compete the ultimate losers are customers. This type of behaviour harms the economy and deprives businesses and consumers of the benefits of competition.”
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The inquiry is understood to have begun last year after retailers complained about “sky high” modelling fees.
Plainclothes police and CMA investigators raided the offices of three of the agencies, seizing computer hard drives and files of printed documents. The agencies under investigation have managed the careers of some of the world’s most famous models, including Naomi Campbell, Yasmin Le Bon, Claudia Schiffer and Jourdan Dunn.
Misconduct is said to have taken place across modelling assignments ranging from magazine fashion shoots, where model fees were a few hundred pounds, to advertising campaigns offering more than £10,000.
Storm Model Management was fined £491,000 and Models 1 was fined £394,000. FM Models was told to pay £251,000, although it went into liquidation in January.
Smaller fines were given to Viva Model Management and Premier Model Management. The Association of Model Agents was fined £2,500.
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Models 1, Premier and Storm said the CMA was “wholly mistaken” in its findings and they would be appealing against the decision.
“The CMA’s statement does not reflect a thorough understanding of the market for modelling agencies in the UK, notably the role which agencies play in protecting the interests of models,” they said in a joint statement. “The agencies did not collude with the aim of forcing up or fixing prices to the detriment of consumers, acting instead to protect the interests of models and also ensure a sustainable market which benefits customers, the economy and society.”