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Top model agencies accused of price fixing by watchdog | Top model agencies accused of price fixing by watchdog |
(about 1 hour later) | |
The UK's five top model agencies have been accused of collusion and price fixing by the Competition and Markets Authority (CMA). | The UK's five top model agencies have been accused of collusion and price fixing by the Competition and Markets Authority (CMA). |
It follows a series of raids at the agencies' offices in London last August. | It follows a series of raids at the agencies' offices in London last August. |
The five: FM Models, Models 1, Premier, Storm and Viva, agreed "a common approach to pricing", the CMA said. | The five: FM Models, Models 1, Premier, Storm and Viva, agreed "a common approach to pricing", the CMA said. |
None of the agencies has so far responded to the accusations, which at this stage are provisional findings. | None of the agencies has so far responded to the accusations, which at this stage are provisional findings. |
FM Models is no longer in business, having gone into liquidation in January this year. | |
The CMA said it would consider representations from the agencies before deciding whether the law had been broken. | The CMA said it would consider representations from the agencies before deciding whether the law had been broken. |
The Association of Model Agents - the industry trade body - is also accused of playing a central role in the price fixing allegations. | The Association of Model Agents - the industry trade body - is also accused of playing a central role in the price fixing allegations. |
The CMA said it circulated emails to its members, encouraging agencies to negotiate higher fees. | The CMA said it circulated emails to its members, encouraging agencies to negotiate higher fees. |
'Colluding' | 'Colluding' |
The fine for price fixing can be up to 10% of turnover. | The fine for price fixing can be up to 10% of turnover. |
The CMA said High Street fashion chains were among those who may have been charged too much for hiring models. | The CMA said High Street fashion chains were among those who may have been charged too much for hiring models. |
"The allegations concern prices charged to a range of customers, including high street chains, online fashion retailers and consumer goods brands," said Stephen Blake, senior director of the CMA's cartels and criminal group. | "The allegations concern prices charged to a range of customers, including high street chains, online fashion retailers and consumer goods brands," said Stephen Blake, senior director of the CMA's cartels and criminal group. |
"The CMA alleges that these five model agencies sought to achieve higher prices in negotiations with their customers by colluding instead of competing." | "The CMA alleges that these five model agencies sought to achieve higher prices in negotiations with their customers by colluding instead of competing." |
The case is the first time the CMA has investigated businesses in the creative industries. | The case is the first time the CMA has investigated businesses in the creative industries. |
The inquiry was launched in March last year. | The inquiry was launched in March last year. |
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