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PhotoRESEARCHER |
PhotoRESEARCHER Newsletter for December Week Two # 447B |
KEY WORDS: | Price Fixing | Budget | Model Agencies | Evidence | Statute | Agency Commissions | Collusion | Wrongdoing | Deductible | Actual-Expense | IRS | Mileage Allowance | Commuting Expenses | Amended Return | Diary | Julian Block | Tax Attorney | Travelers Abroad
NEWSWORDS: | Goodbye Realism? | Hello Realism? | There You Go Again | Crime Don’t Pay | Those Keywords | Diana Walker | My Bizarre Lens | Move Over Boss
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Models' Suit for Anti-Trust
Price Fixing Survives
by Joel Hecker
Many photographers have, of course, utilized the services of professional models. Fees for their modeling services necessarily impact on the total budget and often indirectly affect the amount available to meet the photographer's budget for fees and expenses. A recent case was commenced in the United States District Court for the Southern District of New York, by a class of professional models against substantially all of the model agencies in New York. The case, Fears v. Wilhelmina Model Agency, Inc. (and other model agencies ), alleged various anti-trust violations including collusion as to the parallel fixing of agency commissions charged to the models.
In a recent decision, the Court, on a motion for Summary Judgment, refused to dismiss this one count, finding sufficient evidence to present to a jury.
In particular, the Court found extensive evidence that the model agencies switched their business model from employment agencies to one of model management agencies in order to avoid a New York statute which limits employment agency commissions to 10%. It further found extensive evidence of agreements between the agencies on various components of their businesses, such as client service fees, holiday closing schedules, cancellation policies, and penalties assessed against agencies who attempted to hire models represented by other agencies. The Court found that, taken together, this body of evidence "may reasonably be inferred to demonstrate an industry inundated with collusion."
One claim that was dismissed concerned collusion on fees charged to clients (who in some instances would be photographers). The Court ruled that the models had no standing to challenge this practice since they were not directly harmed.
The agencies continue to deny any wrongdoing and the case will eventually go to trial if not settled.
Attorney Joel L. Hecker lectures and writes extensively on issues of concern to the photography industry. His office is located at Russo & Burke, 600 Third Ave, New York NY 10016. Phone: 1 212 557-9600. E-mail: HeckerEsq@aol.com.
Ottmar Bierwagen |
For the freelance photo researcher…
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Galen Rowell
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TRAVELERS ABROAD Photobuyers: Watch this column. For the e-mail address, phone or fax number of the traveling photographer, call the PhotoSource International office and ask for Rohn Engh (1 800 624-0266). For an expansion of this list: www.photosource.com and press the Travelers Abroad button, to learn of past international destinations of our photographers. John Whiteley Fred J. Eckert David Smith Alf Jacob Nilsen
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447B |
 Dena Torgerson |
 Brad Freeman |
 Antonio Verahaus |
 Lacy Drinkwine |