Top Model Agencies Facing Price Fix Claims

Five top model agencies face accusations by the competition regulator that they colluded to fix prices charged to fashion brands and retailers.

The claims against the agencies and their trade body, the Association of Model Agents (AMA), follow an investigation launched in March last year by the Competition and Markets Authority (CMA).

It alleges that FM Models, Models 1, Premier, Storm and Viva together with the AMA breached competition law.

The agencies are among the most high-profile in the industry. Premier has represented Naomi Campbell while Storm has Jourdan Dunn on its books and previously looked after Kate Moss and Cara Delevingne. Models 1 represents Sophie Dahl and Yasmin LeBon.

The CMA claims that the agencies shared confidential, competitively sensitive information including in some instances "a common approach to pricing".

It said the agencies used the AMA and its council "as a vehicle for price coordination".

This included circulating emails known as "AMA alerts" to encourage model agencies to reject fees being offered by specific customers and to negotiate a higher fee.

Model agencies typically charge around 35% of the invoice - so would earn £350 for every £1,000 paid by a customer for a modelling job. Higher prices would ultimately be passed on to shoppers.

The CMA's findings come after it reportedly raided modelling agencies' offices, interviewed staff and seized computer hard drives as part of the investigation last summer.

Stephen Blake, 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.

"These are provisional findings only and no conclusion can be drawn at this stage that there has been a breach of competition law.

"We will carefully consider any representations from the parties before deciding whether the law has been broken."

Sky News attempted to contact all the agencies and the AMA but was either told there was no comment or had yet to receive a reply.