Leading model agencies fined £1.5m by CMA for price fixing

Five model agencies and their trade body have been fined a total of £1.5m by the competition watchdog for price fixing.

FM Models, Models 1, Premier (BSE: 500540.BO - news) , Storm and Viva, together with the Association of Model Agents (AMA), "colluded instead of competing" on prices for modelling services, the Competition and Markets Authority (CMA) said.

This took place from at least April 2013 until March 2015, according to the watchdog, which issued its findings after a 21-month investigation .

The CMA looked into a range of modelling assignments, from magazine fashion shoots offering fees of a few hundred pounds to ad campaigns offering more than £10,000.

It said: "The conduct occurred in the context of negotiations with a range of customers, including well-known high street chains, online fashion retailers and consumer goods brands."

But the CMA said the collusion "did not... extend to the services of so-called 'top models'".

John Wotton, chair of the body's case decision group, said: "This type of behaviour harms the economy and deprives businesses and consumers of the benefit of competition."

The CMA said that the parties involved "regularly and systematically exchanged information and discussed prices in the context of negotiations with particular customers".

Storm, which has Jourdan Dunn on its books, was fined £491,000.

Models 1, which lists Sophie Dahl among its models, received a penalty of £394,000.

Premier, whose models include Bar Refaeli, was fined £150,000.

FM Models was hit with a £251,000 charge, while Viva took a penalty of £245,000 and the AMA was fined £2,500.

French and Italian authorities have recently handed out fines following their own investigations into the modelling services sector.

Agencies Models 1, Premier and Storm said the CMA's findings were "wholly mistaken" and that they planned to appeal.

"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," the agencies' statement said.

"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."