Model Agencies Fined For Colluding on Prices (UK)

A recent case where 5 model agencies and their trade association were fined more than £1.5m for colluding, instead of competing, on prices is highlighted in an open letter from the Competition and Markets Authority warning businesses in the creative sector about the penalties for breaking competition law.

The agencies involved in the case “regularly and systematically exchanged confidential and commercially sensitive information and discussed prices in the context of negotiations with particular customers. In some cases, they agreed to fix minimum prices or agreed a common approach to pricing.”

The trade association was used to share confidential and commercially sensitive information to influence members to resist the prices offered by customers because they were too low.

In addition to publishing the open letter in the run-up to London Fashion Week, the CMA has also written directly to a number of fashion sector businesses to warn them that illegal behaviour such as price collusion will not be tolerated.

‘CMA letter to the creative industries on competition law’ includes links to range of guides, including a video on information sharing. It also provides contact details for businesses who want to benefit from the lenient treatment available to those who are the first to inform the CMA about illegal behaviour, in which they have been involved.