Modeling Agency News
Modeling Agencies Agree to Curb Sales Tactics
"Three Fairfax County modeling agencies, all under the cloud of a Federal Trade Commission investigation, agreed yesterday to sharply curb the sales pitches for expensive training classes they make to would-be models. The three firms--Model 1 Inc., whose "model scouts" annually recruit thousands of prospects throughout the area by flattering them about their looks; Creative Talent Management Inc., a dormant talent-search firm, and Erickson Agency Inc., a booking company--made the concessions just three days after the FTC filed suit against them in U.S. District Court in Alexandria."1
"Under a preliminary resolution of the case, the three firms said their future sales pitches "in no way constitutes an admission . . . that they have engaged in any illegal or wrongful conduct" or that anyone has been harmed in the past. But the firms said they now will not tell prospective modeling students that they are "highly selective" in picking prospects, represent that the trainees "are likely to obtain substantial paid employment as models," or that Model 1's "principal source of income is commissions" from models, rather than training classes it conducts. In addition, Model 1 agreed to have its scouts hand a statement to prospects they approach on the street and elsewhere that says the model training would cost from $800 to $1,600, and that according to a recent union survey "no more than 10 percent of local acting union members earn more than $7,500 annually from acting jobs."2
"Erickson said her company does not train models, but estimated the firm books 3,000 to 5,000 modeling jobs annually, with a third to half of the work going to recent Model 1 and Creative Talent model school graduates. In addition, she said she is a paid consultant to Model 1."3
"David T. Ralston Jr., a lawyer for Model 1, Creative Talent, Hoffman and Bell, said he did not think the new disclosure on the training costs and the relative shortage of lucrative modeling or acting work would hurt Model 1. "By providing that notice, that takes away any concern on whether someone wants to come in and take part in the program," he said. "It's not so much new information as being succinctly presented." He described the pact as "an easy agreement for us" because Model 1 and Creative Talent did not feel their scouts and officials have misled consumers. "If they are misrepresenting," he said, "they're going to be fired."4
1. Kenneth Bredemeier, "Modeling Agencies Agree to Curb Sales Tactics," Washington
Post, May 29, 1999; p. E2.
2. Ibid.
3. Ibid.
4. Ibid.
(Creative Talent Management, Model 1)
FTC Sues Va. Modeling Firms
"The Federal Trade Commission yesterday filed suit against three Northern Virginia modeling firms, accusing them of engaging in a "fraudulent scheme to lure consumers" into signing expensive training contracts without much hope that they would get significant modeling work. The FTC, in a lengthy complaint filed in U.S. District Court in Alexandria, alleged that Model 1 Inc., whose "model scouts" recruit thousands of prospects in the area by flattering them about their looks, and Creative Talent Management Inc., another talent-search firm, joined with the Erickson Agency Inc., a booking company, to "operate their deceptive scheme as one common enterprise." The federal agency, in seeking a temporary restraining order and eventually an injunction, is asking a judge to freeze the assets of all three firms and their executives. One exception is income earned by Erickson that doesn't stem from its work with Model 1 and Creative Talent. If granted, an asset freeze would effectively leave the firms and their officials under judicial control, meaning they couldn't spend money without the permission of the court."1
"The FTC said in its complaint that the three firms "represent that they are highly selective in scouting, screening and reviewing consumers for marketability as models and actors" and accept only 10 percent of the consumers interviewed for training. But the federal consumer watchdog said that of the more than 200 complaints it reviewed, "in no case did the [Model 1] review committee reject a candidate who paid the deposit."2
"In addition to seeking the asset freeze, the FTC asked Lee to order the firms to end any misleading sales tactics and to give future customers an "affirmative disclosure statement" about the nature of their businesses and pertinent statistics about consumers' past experiences with the firms."3
"Edward J. Johnson III, president of the regional BBB, said the FTC suit "represents a real victory for consumers in the Washington area."4
1. Kenneth Bredemeier, "FTC Sues Va. Modeling Firms," Washington
Post, May 26, 1999; p. E3.
2. Ibid.
3. Ibid.
4. Ibid.
(Creative Talent Management, Model 1)
Some Hopefuls Say They Learned an Ugly Lesson
"College freshman Jamie Bolger remembers the moment last fall: She was working at her part-time job filling doughnuts at a Giant Food store in Fredericksburg, Va., when a woman approached her with an intriguing question. "Excuse me, are you a model?" the woman asked. "You've got beautiful eyes. Have you ever thought of modeling? You could be in commercials." In an instant, the woman, who said her name was Nadia, whipped out a cellular phone and booked Bolger for an appointment at Model 1, a storefront modeling school in Tysons Corner. Bolger went there a few days later, listened to the sales rep's pitch that modeling was "a good way to earn extra money" and browsed through Model 1's handouts touting a vast array of 1990s movies and commercials for which it says it had placed actors and models, even though Model 1 only opened for business last June 8."1
"The BBB has received more than 4,000 inquiries about the firm's aggressive, on-the-street recruitment by "model scouts."2
"Our file experience shows that this company has an unsatisfactory business performance record with the bureau due to its failure to substantiate its advertising and promotional claims, and its failure to respond to some complaints brought to its attention by the bureau," the BBB says in its current report on the firm. "They're up to no good," said Edward J. Johnson III, president of the regional BBB. "They use high-pressure sale tactics and engage in misrepresentations on getting jobs and on exclusivity--that they only [accept] 10 percent" of the prospective models for their training classes. "What I see is how blatantly aggressive they are," Johnson said.3
"Paulette Neas, chief of investigations and licensing for the Fairfax County consumer services office, said: "We are very concerned about the practices of this company. We have some concern that they are are engaging in practices that are misleading. We would feel more comfortable if they just tell people that they sell model training" instead of often leaving the impression with prospects that modeling jobs are in their immediate future. She has referred the matter to the county attorney's office for further investigation."4
"While I am always searching for ways to eliminate complaints, I am very proud of my company's record," Hoffman wrote. "An overwhelming majority of Model 1's customers have told us in their written evaluations that they were very satisfied with the services that they have received from Model 1." He supplied no names of the satisfied model trainees, as had been requested. "The allegations described in your letter are isolated occurences, contrary to Model 1's regular business practices," he wrote. "Those complaints, even assuming that they are all well-founded, represent only a minuscule percentage of Model 1's business. Accordingly, it would be wrong for you to draw any substantive conclusions about my company from a handful of allegations that are not representative of the way that Model 1 does business."5
"Some of the model scouts are recruited through frequent classified ads in The Post, such as the one that ran Jan. 31 with the headline "MY LIFE." "Hi, My name is Jason. I make my living attending fashion shows, going to plays at the theater, dining out at elegant restaurants, marketing my company's mgmt services to businesses and individuals, and traveling to beautiful places. When others are heading off to their desk jobs, I am socializing with my friends and driving around in my sleek beautiful Acura. I am a model scout for the largest & hottest modeling company in the metro area. 30-40K possible Base + Bonus or commission."6
"In The Post letter, Hoffman was asked how the company uses model scouts, how they are trained, who they are instructed to recruit, what they are told to tell prospective customers, how they are paid and how much. Hoffman, in his letter, did not respond to a number of the questions, writing instead, "Model 1's talent scouts are provided with scheduled training. The training and compensation of Model 1's scouts [and Model 1's employees] is proprietary."7
"Laura Davies, a sophomore nursing student at Georgetown University, said she was approached on campus last fall by a woman who asked her, "Have you ever done any modeling before? You have a great look for what my company is looking for. She made it sound like she worked for an agency that hired models. I was kind of curious. I didn't walk away. She made it sound very easy to get this job. She said as a model, you'd get $300 to $400 a shoot."8
1. Kenneth Bredemeier, "Some Hopefuls Say They Learned an Ugly Lesson," Washington
Post, Apr. 11, 1999, p. H1.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.
6. Ibid.
7. Ibid.
8. Ibid.
(Creative Talent Management, Model 1)
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