Modelling Giant Agencies and Union Slapped with 2.4 Million Euro Fine by French Authorities Due to Price Fixing Scandal
In the world of high-fashion, competition is fierce, and sometimes, it can lead to questionable practices. While recent headlines have focused on consumer protection issues, a historical case involving French modeling agencies and price fixing has come to light.
In 2016, the French competition authority, the Autorité de la concurrence, found several modeling agencies guilty of engaging in anti-competitive practices. The agencies were fined amounts ranging from 80,000 to 600,000 euros for their involvement in price fixing and the distribution of pricing schedules.
The pricing schedules, used as a reference for negotiations with clients, covered total prices invoiced for modeling services, with variations up to three times the minimum salary. These schedules were used by 37 modeling agencies, representing almost the entire market, and had a worldwide turnover of some 150 million euros at the end of the period the Autorité investigated.
One of the agencies, Elite Models, was ordered to pay €65,000 to Dutch fashion model Ananda Marchildon after she won her lawsuit. The lawsuit was due to Elite Models refusing to book Marchildon for a job because of her body shape.
The professional union of modeling agencies, SYNAM, was also fined 50,000 euros for its role in distributing the pricing schedules between 2000 and 2010. The Marilyn Agency, which represents top models like Claudia Schiffer and Eva Herzigova, was fined the largest amount of 600,000 euros.
This type of behavior, including price fixing and anti-competitive agreements, is recognized as a serious violation under competition law. When discovered, such practices typically result in substantial fines and regulatory actions, as seen in related cases in other sectors and countries.
It's important to note that there is no direct record of a historical fine specifically imposed on modeling agencies in France for price fixing. Further specialized searches in competition law databases or French regulatory announcements would be necessary for precise historical data on this topic.
In a related development, California Assemblymember Marc Levine introduced AB 2539, a bill aimed at protecting the health of professional models, on February 19, 2016. The bill is a response to France banning excessive thinness in models, following the death from anorexia of French fashion model Isabelle Caro.
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In conclusion, while the price fixing case involving French modeling agencies may not have received as much attention as recent consumer protection issues, it serves as a reminder of the importance of fair competition in all industries. The fines imposed on the agencies involved send a clear message that such practices will not be tolerated.
1) The price fixing and anti-competitive practices engaged by several modeling agencies in France, as uncovered by the Autorité de la concurrence, demonstrate that such behaviors are not exclusive to the fashion industry, but are also a concern in finance and business.
2) The imposition of substantial fines on modeling agencies found guilty of price fixing and anti-competitive agreements serves as a warning to businesses in all sectors, emphasizing the serious consequences of violating competition law.
