The Commission's action makes the consent order provisions binding on the respondents.
CFDA and 7th on Sixth are both based in New York City. CFDA represents most of the nation's best-known fashion designers and 7th on Sixth produces the two major fashion shows for the industry each year.
Under the final order, the firms are prohibited from entering into, organizing, implementing or continuing any agreement to:
- raise, lower or fix the price, terms or other forms or conditions of compensation for modeling or modeling agency services; or
- encourage or assist anyone to engage in the above conduct.
The settlement does not prohibit CFDA or 7th on Sixth members from employing the same models or jointly hiring models.
In addition, the consent agreement requires CFDA and 7th on Sixth to send a specifically-worded letter along with the complaint and settlement to all members, officers and directors of the organizations, as well as to 16 named modeling agencies, and to designers with whom they have discussed the benefits of joining 7th on Sixth. The letter states that CFDA and 7th on Sixth "may not negotiate on behalf of fashion designers collectively with models or modeling agencies ...and may not enter into or continue any agreement...for the purpose or with the effect of affecting the prices paid for modeling or modeling agency services."
The consent agreement was announced for a public-comment period on June 9. The Commission vote to issue it in final form occurred on Oct. 17, and was 5-0.
NOTE: A consent agreement is for settlement purposes only and does not constitute admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $10,000.
A news release summarizing the complaint and consent agreement was issued at the time the Commission accepted the consent agreement for public comment. Copies of that release and of the complaint and final order are available from the FTC's Public Reference Branch, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-2222; TTY for the hearing impaired 1-866-653-4261. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710. FTC news releases and other materials also are available on the Internet at the FTC's World Wide Web Site at: http://www.ftc.gov.
(FTC File No. 941 0007)
(Docket No. C-3621)