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WASHINGTON, Oct. 21, 1999 -- The Erickson Agency, Inc. and its
owner, Patricia Erickson, have settled Federal Trade Commission charges
over Erickson's role in Model 1, Inc. and Creative Talent Management,
Inc.'s deceptive scheme to lure consumers into paying large amounts for
modeling and acting training classes based on the promise of getting
high-paying assignments.
Ms. Erickson was paid to evaluate the
suitability of consumers for Creative Talent Management and Model 1's
training programs, and she allowed the companies to use Erickson's name
and client list to deceptively market their programs.
As part of the settlement, the Erickson
defendants are banned from assisting anyone else in the marketing or
sale of modeling and acting training programs. In addition, should the
Erickson defendants ever operate their own training program, they are
banned from the sales practices that were the hallmarks of Model 1 and
Creative Talent Management's programs.
In May 1999, the FTC charged Model 1, Inc.,
and its president, Jason Hoffman; Creative Talent Management, Inc. and
its president, Ralph Bell; and The Erickson Agency, Inc., and its
president, Patricia Erickson, with misrepresenting their ability to get
lucrative jobs for consumers who contracted for their modeling and
acting courses.
The Commission's complaint also alleged
that the defendants misrepresented themselves as highly selective in
scouting, screening and reviewing consumers for marketability as models
or actors. Model 1, Inc., Jason Hoffman, Creative Talent Management,
Inc. and Ralph Bell settled FTC charges on August 27, 1999.
Under the terms of today's settlement,
Patricia Erickson and The Erickson Agency are banned from assisting any
entity with the marketing or sale of modeling and acting development
programs by:
appearing in any promotional materials
or performing marketing services to consumers;
reviewing the marketability of
individuals for professional work as actors or models;
allowing a business to use the name of
the defendants' clients unless the client hired graduates of that
modeling and acting training program during the preceding three
calendar years; or
serving as a reference for any entity
that offers modeling and acting training programs.
They also are permanently banned from
working with Jason Hoffman, Ralph Bell, Model 1 or Creative Talent
Management in any business engaged in the marketing or sale of any
services for aspiring models or actors.
As with the settlement reached with Model
1, Inc., Jason Hoffman, Creative Talent Management, Inc. and Ralph Bell,
Erickson's settlement prohibits Patricia Erickson and The Erickson
Agency from falsely representing that:
they are selective in scouting,
screening and reviewing consumers for marketability as models or
actors;
consumers are likely to obtain
substantial paid employment as models or actors through the
defendants' efforts;
their principal source of income is
commissions on the fees paid to their models and actors by clients;
individual sales personnel or other
agents have industry expertise to assess consumers' marketability as
models or actors;
any person or entity has hired talent
trained by the defendants; and
the availability of specific modeling or
acting assignments.
In addition, in the event that the Erickson
defendants ever operate their own training program, they cannot:
charge any non-refundable testing and
processing fee in excess of $50;
conduct mass scouting by holding
in-person solicitations away from their primary business location
using scouts or other sales staff who are paid commissions based on
enrolling consumers in modeling and acting development services; or
condition talent representation on
consumers' payment of greater than 50% of the tuition and fees for
modeling and acting training classes.
In addition, to allow consumers an adequate
time to cancel any contract for future training, Erickson must also
provide a 3-day cooling off period in which the consumer may cancel his
or her contract and receive his or her money back less the $50
non-refundable fee, after the consumer has been accepted into any
modeling or acting development program, and after the consumer has been
informed of the total cost of the program.
Finally, under the settlement, the Erickson
defendants must pay a $25,000 monetary judgment, which contains an
avalanche clause that calls for the defendants to pay a $500,000
judgment if the court finds that either of them made a material
misrepresentation or omission on their sworn financial statement. The
settlement also contains various recordkeeping requirements to assist
the FTC in monitoring the defendants' compliance.
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