132/10    10 December 2010

The OFT has secured undertakings from several businesses and three individuals to stop practices that may mislead people into thinking they are experienced agencies able to secure paid work in the modeling and entertainment industry.

This follows an OFT investigation into the business activities of 1st Class Trading Limited; Model Factor LLP (also trading as Celebrity Factor); Runway Models Limited (also trading as On the Runway and Models and Extras); Model Model (BVI) and individuals connected to those businesses.

Consumers, commonly children or young people and their families, responded to adverts saying that 'an agency' was looking for people to undertake catalogue, photographic, film TV extra and fashion work. Typically, offers of a free photo test shot and a photograph were made and open 'auditions' usually took place at a local venue in the name of that agency.

The OFT believes that misleading statements were made by one or more of the traders about consumers' chances of securing work in the modeling and entertainment industry, the nature of that work and the amount of remuneration they could receive.

Consumers claimed they paid fees of £200 or more for photos and CVs.  In some cases, the OFT believes that consumers were contacted by a second 'agency', and asked to sign up for work and pay another fee. In most cases work did not materialise.

The undertakings oblige the firms and individuals not to mislead people into believing that on payment of upfront fees, successfully passing an audition and a portfolio of photographs being sent out, people will have a realistic chance of getting paid work in the modeling and entertainment industry.

Failure to comply with the undertakings can lead to the OFT taking immediate court action.

Heather Clayton, Senior Director of OFT's Consumer Group, said:

'Many of the victims in this case were children and young people looking to forge a career as a model or actor. The victims and their parents, who often helped them pay the fees, had no previous experience of the entertainment sector so didn't realise the traders were making money through empty promises.

'This network of businesses generated complaints from across the country. We worked with a number of local Trading Standards Services and national bodies to gather evidence and to keep tabs on the various aliases and company names used.'

The OFT investigation found that the traders held auditions in hotels and conference centres across Britain, advertising the events in local newspapers. The OFT worked with local trading standards offices in Wigan, Lancashire, Windsor and Maidenhead as well as the Companies Investigation Branch and the Employment Agency Standards Inspectorate to gather evidence for this investigation.

NOTES

1. For more information, see the case closure summary page.
2. The OFT agreed to investigate this matter in 2009 following an Advertising Standards Authority referral.
3. Undertakings under Part 8 of the Enterprise Act 2002 were given by Runway Models, Model Model and three individuals.
4. 1st Class and Model Factor were dissolved as business entities during the OFTs consultation with the businesses being investigated. As a result they no longer carry on business.
5. The undertakings relate to breaches of the Consumer Protection from Unfair Trading Regulations 2008 and the Cancellation of Contracts made in a Consumer's Home or Place of work etc Regulations 2008.
6. The OFT does not provide advice or resolve individual complaints for consumers. Consumers who are concerned they have been unfairly treated or want advice on their personal circumstances can contact Consumer Direct.