Five of Britain’s top modelling agencies were fined by the Competition and Markets Authority on Friday, after colluding on prices and breaking competition law.
Fines for the five agencies, which were FM Models, Models 1, Premier, Storm and Viva, totalled £1,533,500. Storm Models, who represent Kate Moss and Cara Delevingne, were fined the largest amount at £491,000, followed by Models 1 with £394,000. The industry body, the Association of Model Agents, was fined just £2,500.
The CMA found that all five agencies, as well as the AMA, exchanged information and set minimum prices for clients rather than promoting competition. John Wotton, Chair of the Case Decision Group responsible for making the decision, said:
“Strong competition benefits consumers, the economy and society. When businesses collude rather than compete the ultimate losers are customers.
“In this case the agencies and the AMA colluded with each other over their approach to pricing and, in some instances, the agencies agreed to fix minimum prices. This type of behaviour harms the economy and deprives businesses and consumers of the benefits of competition.
“It is the CMA’s responsibility to ensure that markets are competitive, and to take action when businesses fail to comply with competition law. This applies to all businesses and all industries”.
However, in a statement the CMA also added that big name “top models” were not involved in the price-fixing.
The Competition Act 1998 prohibits agreements, practices and conduct that may have a damaging effect on competition in the UK, investigations into which are carried out by the CMA, an independent body. Any business found to have infringed the prohibitions in the Competition Act 1998 or Article 101 TFEU can be fined up to 10 percent of its annual worldwide group turnover.