On 16 December 2016, the CMA released the non-confidential version of its decision on illegal price fixing arrangements between leading UK modelling agencies FM Models, Models One, Premier, Storm and Viva (the “Decision”) in the period of April 2013 to March 2015 (the “Cartel Period”).
Businesses that purchased modelling services during the Cartel Period from these agencies are entitled to recover compensation. Even businesses that purchased modelling services from other agencies may also be entitled to compensation as the cartel is likely to have caused higher prices to be charged across the UK modelling market.
The purpose of this note is to provide you with some information about the Decision and help you understand whether you may have a claim.
Effect of the Decision
Once the CMA has ruled that a company has infringed competition law, the ruling becomes binding on the courts. Therefore, there is no need to prove the existence of the cartel or the liability of the infringing parties all of whom are jointly and severally liable for any loss suffered as a result of the cartel. The only disputed issue is likely to be the quantum of the claim (i.e. how much compensation is owed).
Valuing the claim
We can help you make a preliminary assessment of the value of your claim to determine whether it is something which is worthwhile pursuing.
The three main elements in assessing the potential claim value are: the value of relevant commerce; the extent of the overcharge; and the extent of any pass-on.