But they must bear legal costs, Competition Appeal Board rules
FIVE modelling agencies have had their fines for price-fixing reduced on appeal.
They now have to pay a total of $243,077, down from $291,067, following a decision by the Competition Appeal Board (CAB).
This was based partly on findings that a large chunk of the profits went to the models themselves.
The board also felt that senior management from some agencies who were involved did not deserve the higher penalty they were previously given.
However, the modelling firms will have to bear the legal costs of the appeal proceedings, which have lasted for 15 months.
Eleven agencies were fined for price-fixing in 2011 by the Competition Commission of Singapore (CCS).
They said they wanted to fight for better terms for local models, but had collectively raised the rates for hiring them. This was done through a group called the Association of Modelling Industry Professionals (AMIP).
For example, the rate for models was raised from $250 to $400 per fashion show between 2005 and 2009. At the time, the 11 companies accounted for about 40 per cent of the market. This affected photographers, fashion brands and show choreographers, said the statutory board yesterday.
Five of the 11 agencies - Bees Work, Diva, Impact, Looque and Ave - had appealed to the CAB to reduce the penalties.
Although the board reduced the fine based on two points of appeal, it dismissed other points, which included pleas of ignorance and that the cartel did not adversely affect competition.
"Trade associations should take care not to allow themselves to be used as a front for their members to engage in price-fixing or other anti-competitive practices," said CCS assistant chief executive Toh Han Li. It is important that firms disassociate themselves from such discussions and report them immediately, he added.
AMIP, which the commission deemed just a "front" for its members, disbanded in 2006.
The six firms that paid the full fines were Phantom Management, Impact Models Studio, Electra Management, Linsan Models, Catworkz International and Quest Model Management.
Mr Chris Swee, general manager of Looque Models, said the company has accepted the reduced sum and moved on.
"But it's been an exhaustive process," he added. "We are just more careful about how we price our models now."
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