Top UK model agencies accused of price fix scam
Five agencies allegedly sought to achieve higher prices in negotiations with customers by colluding instead of competing, says regulator
The competition regulator in the United Kingdom is investigating Britain's top modeling agencies amid concerns that they colluded to fix prices.
The Competition and Markets Authority (CMA) said in a statement Wednesday that FM Models, Models 1, Premier, Storm and Viva agreed to exchange confidential and competitively sensitive information, including future pricing information, and in some instances agreed a common approach to pricing.
The CMA said it would now hear statements from the agencies and the AMA before deciding whether they had broken the law.
Premier said it was not making any comment. At the time of publication other agencies named by the CMA had not yet responded to requests for comment.
Storm discovered Kate Moss and Cara Delevingne while Premier was the agency that gave Naomi Campbell her first big break.
"The allegations relate to prices charged to a number of customers including high street chains, online fashion retailers and consumer goods brands," said CMA Director of the Cartels and Criminal Group, Stephen Blake.