CMA accuses top model agencies of price fixing

The Competition and Markets Authority has accused five modelling agencies of colluding to fix their prices.

The competition watchdog said that between April 2013 and March 2015, FM Models, Models 1, Premier, Storm and Viva – used by big name high street and online retailers that could include the likes of ASOS , Next, Burberry and M&S – agreed to exchange confidential, competitively sensitive information, including future pricing information, and in some cases agreed a common approach to pricing.

Premier launched the careers of Naomi Campbell, Cindy Crawford and Claudia Schiffer, while Storm discovered Kate Moss. Models 1 represents the likes of Yasmin and Amber Le Bon, and Viva represents Natalia Vodianova.

The CMA said the Association of Model Agents was party to the breach and played an important role in all aspects of the alleged conduct.

Stephen Blake, the senior director of the CMA’s Cartels and Criminal Group, said: “The allegations concern prices charged to a range of customers, including high street chains, online fashion retailers and consumer goods brands. The CMA alleges that these five model agencies sought to achieve higher prices in negotiations with their customers by colluding instead of competing.

“This is the first competition enforcement case taken forward by the CMA in the creative industries, which is an important part of the UK economy. It shows the CMA’s commitment to pursuing allegations that competition law has been broken in all sectors of the economy. Vigorous competition between businesses has benefits for customers and for the economy, keeping prices down and encouraging businesses to improve quality and be more efficient.”

Blake said the findings were only provisional and no conclusion can be drawn yet that there has been a breach of competition law.